QuestionYou have the following observations. Stock HJK will pay dividends $\$ 4$ per share next year. The S\&P 500 index return averages $10 \%$ a year and the rate on Treasury bill is at 6\%. You have downloaded data from Bloomberg and estimated the beta of Stock HJK at 1.25. A. What is the required rate of return? B. What is the price of the stock if the amount of dividends stays at $\$ 4$ per share forever?