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Continued from Question 9 (market and risk free rate assumptions) Two stocks each pay a $1 dividend that is growing annually at 8 percent. Stock

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Continued from Question 9 (market and risk free rate assumptions) Two stocks each pay a $1 dividend that is growing annually at 8 percent. Stock A has a beta of 1.3 Stock B's beta is 0.8 . Using the dividend-growth model, what is the maximum amount you would be willing to pay for each stock? Stock A Stock B Two stocks each pay a $1 dividend that is growing annually at 8 percent. Stock A has a beta of 1.3 Stock B's beta is 0.8 . If treasury bills yield 6 percent and you expect the market to rise by 12 percent, what is your risk-adjusted required rate of return for stock A and stock B

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