You are interested in the purchase of the computer stock, Intel (INTC). It currently has a selling price of According to your research, you expect the earnings and dividends to grow into the foreseeable future at a rate of Management expects next year's dividend to be Hence, the Expected Return on Intel is computed to be, At this time, the return on 10-year Treasury Bonds is at

The Dow has been doing quite well and its average return is Intel, being in a high-tech industry, is exposed to more risk than usual and as a consequence, it carries a beta of

[a] Use the CAPM to determine the Required rate of Return and based on the relationship between the Expected and Required Return, its Alpha Value, what should the stock be priced at (its intrinsic value)?