Contemporary Casuals,Inc.,(CCI)has a beta of 1.15,an expected dividend of $2.30,and an expected dividend growth rate of 5 percent for the foreseeable future.The S&P500 expected return is 18 percent,and the Treasury bill rate is 6 percent.
(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 percent for the foreseeable future.The S&P500 expected return is 18 percent,and the Treasury bill rate is 6 percent.
(a)Calculate the required return on Contemporary stock.
(b)Calculate the price of Contemporary stock.