You are considering investing in Change Airlines at the curr…
You are considering investing in Change Airlines at the current market price of $30. The company just paid a dividend of $2, and dividends are expected to grow at 5% per year. You have looked on Yahoo! Finance and found a beta for the company of 1.3. If you see that Treasuries have a rate of 2.5% and the long-term market risk premium is 7.5%, should you buy Change Airlines today?