A mutual fund manager has a $40.00 million portfolio with a beta of 1.50. The risk-free rate is 4.5%, and the market risk premium is 6.00%. The manager expects to receive an additional $20.00 million which she plans to invest in additional stocks. After investing the additional funds, she wants the fund's required and expected return to be 13.00%. What must the average beta of the new stocks be to achieve the target required rate of return? Do not round your intermediate calculations. 1.25 3.29 211 091.80 0.4 pts Question 11 ABC Company's last dividend was $5.35. The dividend growth rate is expected to be constant at 2.5% for 2 years, after which dividends are expected to grow at a rate of 7.0% forever. The firm's required return tr.) is 12.0%. What is the best estimate of the current stock price? Do not round intermediate calculations. $122.62 $113 54 510527 $118.33 $95.84 Sapp Trucking's balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 8.00% and a yield to maturity of 7.00%. This debt currently has a market value of $55 million. The balance sheet also shows that the company has 10 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current stock price is $25.00 per share; stockholders' required return, s, is 14.00%; and the firm's tax rate is 30%. The CFO thinks the WACC should be based on market value weights, but the president thinks book welghts are more appropriate. What is the difference between these two WACCs? 1.86% O 1.97% 2.53% 2.28% 2.08%