4. Consider a firm that will liquidate in one year. Investors initially expect the firm to pay a liquidating dividend of $12. The beta of the firm's stock is 0.6, the expected market return is 10%, and the risk-free rate is 1%. (A) What is the equilibrium price? (B) Suppose the price is initially set to your answer given in part (A) above. News then suddenly hits that the liquidating dividend will be $14 per share. What is the alpha of the stock relative to the market portfolio once the news hits? Assume no initial price adjustment. (C) Given the alpha specified above, is the representative investor satisfied with his holdings? Why or why not? (D) What happens to get the price back into equilibrium? 4. Consider a firm that will liquidate in one year. Investors initially expect the firm to pay a liquidating dividend of $12. The beta of the firm's stock is 0.6, the expected market return is 10%, and the risk-free rate is 1%. (A) What is the equilibrium price? (B) Suppose the price is initially set to your answer given in part (A) above. News then suddenly hits that the liquidating dividend will be $14 per share. What is the alpha of the stock relative to the market portfolio once the news hits? Assume no initial price adjustment. (C) Given the alpha specified above, is the representative investor satisfied with his holdings? Why or why not? (D) What happens to get the price back into equilibrium