Use the CAPM to determine your required return for valuation RRF RM COV(R,RM) 20 2.400% 7.500% 0.023104 covariance between returns of the stock, i, and the market 0.076000 standard deviation of market returns beta for the stock, i A beta-pi B R (l) (2) hint: calculate this first hint: calculate this second projected ROE projected EPS maximum sustainable 24.000% gmax will be determined by the maximum sustainable growth S4.800 formula using ROE4, EPS, and DIV, (to get dpo, and b,) -tis will be gu so max. sustainable growth; &-ROE-by and b, - 1-DPS/EPS D DIV 10.0000% 7.0000% 4.0000% 2.000% $2.000 g 3 Dividends (not EPS) grow at gi, ga g, etc. Do CFo B R, from above Both 'B's' are the same