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calculations. Round your answers to the nearest cent. a. What should be the market price of the stock? $ b. If the current market price

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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 $60.00, what should you do? The stock | be purchased. c. If the expected return on the market rises to 8.8 percent and the other variables remain constant, what will be the value of the stoc? $ d. If the risk-free return rises to 4.5 percent and the return on the market rises to 9.7 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? $ f. Explain why the stock's value changes in c through e. The increase in the risk-free rate and the simultaneous increase in the return on the market cause the value of the stect- . The decrease in the beta coefficient causes the firm to become risky as measured by beta, which the value of the stock. 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 $60.00, what should you do? The stock | be purchased. c. If the expected return on the market rises to 8.8 percent and the other variables remain constant, what will be the value of the stoc? $ d. If the risk-free return rises to 4.5 percent and the return on the market rises to 9.7 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? $ f. Explain why the stock's value changes in c through e. The increase in the risk-free rate and the simultaneous increase in the return on the market cause the value of the stect- . The decrease in the beta coefficient causes the firm to become risky as measured by beta, which the value of the stock

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