9 of 30 Unsure 1:57:47 The UJK Company has just paid a dividend of $5. The dividends are expected to grow at a rate of 20% for the next three years. After the third year, dividends are expected to decline at a rate of 3% per year forever. The required rate of return for UJK is 12%. The current market price of UJK is $61. Which one of the following statement is correct? O a. O b. UJK is underpriced because its fair price is $66.45 UJK is overpriced because its fair price is $73.12 UJK is underpriced because its fair price is $59.33 UJK is overpriced because its fair price is $61.17 O e. UJK is overpriced because its fair price is $57.02 O c. O d. 2 Marks II of 30 Unsure Assume CAPM is a correct model. Stock A's required rate of return is 12% and Stock B's required rate of return is 10%. Beta of Stock A is 1.2 and Beta of Stock B is 0.8. What is the required rate of return of Stock C which has a beta of 1.56? The required rate of return of Stock C is % (Please retain at least 4 decimals in your calculation and at least 2 decimals in the final answer) 1.5 Marks