27 QUESTIONS (12 points) USE THE 5) USE THE FOLLOWING INFORMATION TO ANSWER THE FOLLOWING FOUR ABC's Do=$2.00. 9 (constant and forever) - 9%, beta = 2.00 R 0.9 (constant and foreveri 9 bata market portfolio=8% 2.00 R = 3% and expected return on A. What is the stock's intrinsic value today? B. Now Information is introduced today Expected inflation rate increases by 1% (100 basis points), but nothing else channes First show in the diagram below. Then show the new RRR and new Intrinsic value for ABC stock (Hint: R. changes but not R. -Ri). LABEL the diagram. SHOW THE NEW SML VIA DOTTED LINE DIAGRAM After change Before change RRR: PRICE