a. You have been managing a $5 million portfolio that has a beta of 1.25 and a required rate of return of 8.375%. The current risk-free rate is 4%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.95, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations. Round your answer to two decimal places. %

b. Maxwell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 7% per year. If D₀ = $5 and r_s = 16%, what is the value of Maxwell Mining's stock? Round your answer to the nearest cent.