8. CAPITAL ASSET PRICING MODEL (2) Whole Foods Inc. paid a quarterly dividend of $0.47 recently. Treasury bills are ylel

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8 Capital Asset Pricing Model 2 Whole Foods Inc Paid A Quarterly Dividend Of 0 47 Recently Treasury Bills Are Ylel 1 (19.97 KiB) Viewed 42 times

8. CAPITAL ASSET PRICING MODEL (2) Whole Foods Inc. paid a quarterly dividend of $0.47 recently. Treasury bills are ylelding 4%, and the average stock is returning about 11%. Whole Foods is a stable company. The return on its stock responds to changes in the political and economic environment only about 70% as vigorously as that of the average stock. Analysts expect the firm to grow at an annual rate of 3.5% into the indefinite future. Calculate a reasonable price that investors should be willing to pay for Whole Foods stock.