INDTAP a search this hapters 11 and 14 EOC problems Assignment 11: Chapter 11 and 14 EOC problems Aasiam Score 89.74% Sunt Agent for Gating Question of 13 Check Sty Work eBook Problem 11-06 The risk-free rate of return is 4 percent, and the expected return on the market is 8.2 percent. Stock A has a beta coefficient of 1.6, an earnings and dividend growth rate of 6 percent, and a current dividend of $2.20 a share. Do not round Intermediate calculations. Round your answers to the nearest cent. a. What should be the market price of the stock? $ b. of the current market price of the stock is $32.00, what should you do? The stock Sale be purchased c. If the expected return on the market rises to 10 percent and the other variables remain constant, what will be the value of the stock $ d. If the risk-free return rises to 6 percent and the return on the market rises to 10.3 percent, what will be the value of the stock? $ e. If the beta coeffident fails to 1.3 and the other variables remain constant, what will be the value of the stock? $ f. Explain why the stock's value changes in through The increase in the return on the market Select the required return and Select the value of the stock The increase in the risk-free rate and the simultaneous increase in the return on the market cause the value of the stock to select The decrease in the beta coeficient causes the firm to become Select risky as measured by beta, which Select the value of the stock. Check Sty Work D DO o