Question: The Cumins Engine Company common stock has a beta of $.9. The current risk free value of return is 5 percent and the market risk premium is 8 percent. The COE of the company is quoted in a press release as saying that the firm will pay a dividend of $.80 each share in the coming year and expects the dividends to grow at a value of 7 percent for the foreseeable future. Using the fixed growth model, determine the value that would you assign to this stock?