Given the following for Stocki:
P_0 54.50
B_i 2.10
rf 0.0800
E(rM) 0.1100
Assuming the CAPM and no dividends, what should the stock be worth in 1 year?
a. 55.63
b. 65.16
c. 62.29
d. 53.88
e. 58.74