ANSWER HURRY

Problem 11-06 The risk-free rate of return is 3 percent, and the expected return on the market is 7.9 percent. Stock A has a beta coefficient of 1.6, an earnings and dividend growth rate of 5 percent, and a current dividend of $1.60 a share. Do not round Intermediate calculations. Round your answers to the nearest cent. a. What should be the market price of the stock? $ b. If the current market price of the stock is $12.00, what should you do? The stock -Select be purchased c. If the expected return on the market rises to 15.1 percent and the other varlables remain constant, what will be the value of the stock? $ d. If the risk-free return riset to 4 percent and the return on the market rises to 15.3 percent, what will be the value of the stock? $ e. If the beta coefficient falls to 1.3 and the other variables remain constant, what will be the value of the stock? $ 1. Explain why the stock's value changes in c through e. The increase in the return on the market -Select- the required return and Select- the value of the stock. The increase in the risk free rate and the simultaneous increase in the return on the market cause the value of the stock to -Select- The decrease in the beta coefficient causes the firm to become Select risky as measured by beta, which select : the value of the stock