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8) The value of a certain stock is estimated via the SML, with assumed values of rF=.038, Beta =1.108 and MRP=.071. It is expected to

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8) The value of a certain stock is estimated via the SML, with assumed values of rF=.038, Beta =1.108 and MRP=.071. It is expected to pay a dividend of $56 annually at the end of each year, and to be worth $2,206 at the end of ten years. What would be the change in value if rF declined by 5 bps and the Beta changed to 1.230 ? Show work for partial credit

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