You are the investment manager of a Towers Baking Company for thelast $3$ years. The companys trading strategy is to buy concerningcommon stock is to buy low and hold. The company has an excess ofcash on hand, due from the sale of a real$-$estate property for $$159$ million.The required rate of return on the market is $12$ percent. The stock of theBaller Company has a beta coefficient of $1\mathrm{.}2,$ and the risk$-$free rate is $6\%.($hint: use the CAPM model$)$ Required:If the dividend expected during the coming year is $$2$ and the growth rate of dividends and earnings is $7$ percent;a$)$ at what price should stock of the Baller Company be selling? DISCUSSION QUESTION $2$b$)$ assumingthattheresponsein$($parta$)$isdeemedlow$,$howmanyunits of the common stocks in the Baller Company can Towers Baking Company buys $($ignore the transaction costs$).$c$)$ if another entitys common stock had a required of return on the market of $10\%,$ and a beta coefficient of $2\mathrm{.}5,$ and the same risk$-$free as above, which of the two stocks you would invest in$?$ Why?