#10) You are forecasting the returns for Marin Company, a plumbing supply company, which pays a current dividend of $9.50. The dividend is expected to grow at a rate of 2.5 percent. You have identified two public companies, Headland and Sage, which appear to be comparable to Marin. Headland has the same total risk as Marin and a beta of 0.95. Sage, in contrast, has a very different total risk but the same market risk as Marin. Sages beta is 0.75. The market risk premium is 4.25 percent and the risk-free rate is 0.75 percent.

(A) Determine the required return for Marin using the appropriate beta. (Round answer to 3 decimal places, e.g. 3.361%.)

(B) Determine the price of Marin. (Round answer to 2 decimal places, e.g. $126.61.)