Ch 11: End-of-chapter Problems - Stock Valuation TUTELA LS eBook Problem 11-08 Two stocks each currently pay a dividend of 51.90 per shere. It is anticipated that both firms dividends will grow annually at the rate of 2 percent. Firm Anos a beta coefident of 0.92 while the beta coeficient of tim Bis 0.79. . ITU.S. Treasury bills currently yield 2.0 percent and you expect the market to increase at an annual rate of 8 percent, what are the valuations of these two stocks using the dividend growth model? Do not round Intermediate calculations, Round your answers to two decimal places Stock AS Stocks D). Why are your valuations diferent? The beta corticent of St. Is higher, which indicates the stocks return is sect Volatile If stock A's price were 547 and stock B's price were 542, what would you do? Stock As Seed and Seed be purchased Stock and Select be purchased TU.S. Treasury bills currently yield 2.6 percent and you exp stocks using the dividend-growth model? Do not round intern Ck A: $ ock B: $ - Why are your valuations different? me beta coefficient of: -Select-7 is higher, which indicates the stock -. If stock A's price we -Select- d stock B's price were $42, what w- Stock A is -Select- stock A lect- be purchased. Stock Bis -Select- stock B lect- be purchased. Gra Stock Valuation vidend or $1.90 per share. It is anticipated that both firms dividends will grow annually at the rate of 2p efficient of firm B is 0.79. rently yield 2.6 percent and you expect the market to increase at an annual rate of 8.4 percent, what are d-growth model? Do not round intermediate calculations. Round your answers to two decimal places. s different? lect-r is higher, which indicates the stock's return is -Select- vyolatite. 547 and stock B's price were $42, what would you do -Select- nd Select be purchased be purchased less and Select more Grade it Now Save & Continue Continue without Saving 11-08 do stocks each currently pay a dividend of $1.90 per share. It is anticipated efficient of 0.92 while the beta coefficient of firm B is 0.79. a. If U.S. Treasury bills currently yield 2.6 percent and you expect the stocks using the dividend-growth model? Do not round intermediate Stock A: $ Stock B: $ b. Why are your valuations different? The beta coefficient of -Select-Y is higher, which indicates the stock's retu c. If stock A's price were $47 and stock B's price were $42, what would yo Stock A is -Select- and -Select- be purchased. Stock Bis -Select- and -Select- be purchased. -Select should should not Grade it c while the beta coefficient of firm B is a. If U.S. Treasury bills currently yield 2.6 percent stocks using the dividend-growth model? Do not Stock A: $ Stock B: $ b. Why are your valuations different? The beta coefficient of -Select-7 is higher, which indica C. If stock A's price were $47 and stock B's price were $ Stock A is -Select- vand -Select- be purchased Stock B is: -Select- and -Select- v be purchased. -Select- undervalued overvalued blem 11-08 eBook ce Success Tips Two stocks each currently pay a dr coefficient of 0.92 while the beta coe Success Tips a. If U.S. Treasury bills current stocks using the dividend-gro Stock A: $ ack Stock B: $ b. Why are your valuations different? The beta coefficient of -Select-7 is higher, c. If stock A's price were $47 and stock B's p Stock A is: -Select- Stock B is -Select- Vand -Select- undervalued and -Select- be purc overvalued be purcha reasury bilis currently yield 2.6 percent and you expect cks using the dividend-growth model? Do not round intermed A: $ B: $ hy are your valuations different? beta coefficient of -Select-7 is higher, which indicates the stock's If stock A's price were $47 and stock B's price were $42, what would ock A is -Select- and: -Select- be purchased. cock B is-Select- and -Select- be purchased should should not Grade