X sols Ch 11: End-of-Chapter Problems - Stock Valuation GB eBook Problem 11-06 The risk-free rate of return is 2 percent, and the expected return on the market is 6.8 percent. Stock A has a beta coefficient of 1.5, an earnings and dividend growth roter of 4 percent, and a current dividend of $3.30 share. Do not round Intermediate calculations. Round your answers to the nearest cent. .. What should be the market price of the stock? $ bi at the current market price of the stock - $87,00, what should you do? The stock seed be purchased c. If the expected return on the market is to 7.8 percent and the other variables roman constant, who will be the value of the stock $ d. If the returns to 4.5 percent and the return on the market is to 3.5 percent, what will be the value of the stock $ e. If the beta coeficient foto 1 and the other variables remon constant, what will be the one of the stock $ T. Explain why the stock value changes in through The increase in the return on the market Select the required return and the value of the stock The increase in the rise free rate and the simultaneous increase in the return on the market cause the value of the stock to The decrease in the beta comot causes the firm to become easy as measured by beta, which select the value of the stock