Contemporary Casuals, Inc., (CCI) has a beta of 1.15, an expected dividend of $2.30, and an expected dividend growth rate of 5 per cent for the foreseeable future. The S&P/TSX Composite Index expected return is 18 per cent, and the Treasury bill rate is 6 per cent.
(a) Calculate the required return on Contemporary stock.
(b) Calculate the price of Contemporary stock.

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The Answer of Contemporary Casuals, Inc., (CCI) has a beta of 1.15, an expected dividend of $2.30, and an expected dividend growth rate of 5 per cent for the foreseeable future. The S&P/TSX Composite Index expected return is 18 per cent, and the Treasury bill rate is 6 per cent.
(a) Calculate the required return on Contemporary stock.
(b) Calculate the price of Contemporary stock.