(c) If King Audio has constant, no growth dividend in the future and beta has gone up to 1.60 as predicted by securities analysts, what will be the share price of King Audio?

(d) If Professor King's prediction is correct, what will be the value of King Audio's share if the firm maintains a constant 8% annual growth rate in its dividends and a beta of 1.60?

(e) Compare the current share price of King Audio and the stock values found in parts (a), (c), and (d). Discuss why these values may differ. From your analysis, which side do investors believe? The prediction from securities analysts or the prediction by Professor King? Finally, what insight you can find between market consensus and CAPM?