b) 1st "Select" A or B,

2nd "Select" is Less or More

c) 1st "Select" is Overvalued or Undervalued,

2nd "Select" is Should or Should Not

a. If U.S. Treasury bills currently yield 4.9 perculations. Round the market to increase at an annual rate of 8.2 percent, what are the valuations of these two stocks using the dividend- Problem 11-08 Two stocks each currently pay a dividend of $2.40 per share. It is anticipated that both firms' dividends will grow annually at the rate of 2 percent. Firm A has a beta coefficient of 1 while the beta coefficient of firm Bis 0.72. and you expect growth model? Do not round intermediate your answers to two decimal places. Stock A: $ Stock B: $ b. Why are your valuations different? The beta coefficient of -Select- is higher, which indicates the stock's return is -Select- volatile. c. If stock A's price were $30 and stock B's price were $30, what would you do? Stock A is-Select- and -Select- V be purchased. Stock B is -Select- Vand -Select- be purchased