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a - ZOOZ Power Ltd company is in a very mature state in their product life cycles. ZOOZ is expected to pay a dividend in

a-ZOOZ Power Ltd company is in a very mature state in their product life cycles. ZOOZ is expected to pay a dividend in year 1 of $2.00, a dividend of $1.50 in year 2, and a dividend of $1.00 in year 3. After year 3, dividends are expected to decline at a rate of 1% per year. An appropriate required rate of return for the stock is 10%. What is the fair value of the stock using the multiple growth model?Is the stock overvalued or undervalued if it is sold in the market for $2? b- You hold a diversified portfolio consisting of a $5,000 investment in each of 20 different common stocks. The portfolio beta is equal to 1.15. You have decided to sell one of your stocks, a lead mining stock whose beta is equal to 1.0, for $5,000 net and to use the proceeds to buy $5,000 of stock in a steel company whose beta is equal to 2.5. What will be the new beta of the portfolio? How can you decrease the beta of any portfolio?

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