A common stock currently has a beta of 1.3, the risk-free rate is an annual rate of 6 percent, and the market return is an annual rate of 12 percent. The stock is expected to generate a dividend of $5.20 at the end of the current year. A toxic spill results in a lawsuit and potential fines, and the beta of the stock jumps to 1.6. Assuming zero growth, the new equilibrium price of the stock Owill be $37.68. Owill be $43.33. O will be $33.33. O cannot be determined from the information given. ETHEON 1PE Metal au 200

A common stock currently has a beta of 1.3 , the risk-free rate is an annual rate of 6 percent, and the market return is an annual rate of 12 percent. The stock is expected to generate a dividend of $5.20 at the end of the current year. A toxic spill results in a lawsuit and potential fines, and the beta of the stock jumps to 1.6. Assuming zero growth, the new equilibrium price of the stock will be $37.68. will be $43,33 will be $33,33. cannot be determined from the information given