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(Capital Asset Pricing Model and WACC) You have the following information for the company Exxon. The “beta” coefficient for Exxon is 1.25 based on the past information. The 30-day T-bill rate is 1.5%, the 5-year average market return of (say, S&P 500 index) in the same period is 11%.

Suppose that Exxon’s current dividend is $1.24 per share with possible expected growth rate as 5% per year from now on, what is your assessment for the value of Exxon’s stock?

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