Topvax is a pharmaceutical company. Dividends are expected to grow at a rate of 5% for the foreseeable futureThe require

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Topvax is a pharmaceutical company. Dividends are expected to
grow at a rate of 5% for the foreseeable futureThe required return
is 15% and the company just paid a dividend of $4.27 per share. (a)
The stock is currently trading at $35 per share. Compute the fair
value of the stock and decide whether it is a good time to invest
in this stock. (6 marks) (b) If the market return is 11% and the
risk-free rate is 3%, what is the beta of the stock? What does this
beta imply about the stock’s volatility relative to the market?