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1) Sandy Corp believes the following probability distribution exists for its stock

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1) Sandy Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock?                                                  

Probability                         Stock's

                        State of                             of State                      Expected

                        the Economy                   Occurring                     Return

                        Boom                                   0.45                             25%

                        Normal                                 0.50                             15%

                        Recession                             0.05                              5%

2. Sara Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company's beta is 1.25, the required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price?