a. 5. PEI Inc. has a required return of 13%. The risk free rate is 5% and the market risk premium is 10%. What is the company's beta? .50 b. .80 1.1 d. 1.3 1.6 c. e. 6. Which of the following statements is correct? a. It is appropriate to use stock valuation model, P = D. (r.- ), for firms which have a constant dividend growth rate and have a r, greater than g. b. If a stock has a required rate of return r, = 12 percent, and its dividend grows at a constant rate of 5 percent, this impfies that the stock's dividend yield is 5 percent. c. The price of a stock is the present value of all expected future dividends, discounted at the dividend growth rate. d. None of the statements above is correct