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eBook Problem 11-05 Jersey Jewel Mining has a beta coefficient of 1. Currently the risk-free rate is 1 percent and the anticipated return on the

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eBook Problem 11-05 Jersey Jewel Mining has a beta coefficient of 1. Currently the risk-free rate is 1 percent and the anticipated return on the market is 7 percent. JM pays a $5.40 dividend that is growing at 4 percent annually. Do not round intermediate calculations. 2. What is the required return for 137 Round your answer to two decimal places 1. Given the required retum, what is the value of the stock? Round your answer to the nearest cent. 5 If the stock is selling for $221, what should you do? The stock overvalued and Bad be purchased d. If the beta coeffident declines to 0.7, what is the new value of the stock? Round your answer to the nearest cent. $ . If the price remains $221, what course of action should you take oven the valuation in The stock is Beach and wat be purchased eBook Problem 11-05 Jersey Jewel Mining has a beta coefficient of 1. Currently the risk-free rate is 4 percent and the anticipated return on dividend that is growing at 4 percent annually. Do not round intermediate calculations. a. What is the required return for JJM? Round your answer to two decimal places. % b. Given the required return, what is the value of the stock? Round your answer to the nearest cent. $ c. If the stock is selling for $221, what should you do? The stock -Select- overvalued and -Select- be purchased d. If the tis ient declines to 0.7, what is the new value of the stock? Round your answer to the nea -Select- is not $ e. If the price remains $221, what course of action should you take given the valuation in d? The stock is -Select- vand -Select- be purchased eBook Problem 11-05 Jersey Jewel Mining has a beta coefficient of 1. Currently the risk-free rate is 4 percent and the anticipated return on the market is 7 percent dividend that is growing at 4 percent annually. Do not round intermediate calculations. a. What is the required return for ]M? Round your answer to two decimal places. % b. Given the required return, what is the value of the stock? Round your answer to the nearest cent. $ c. If the stock is selling for $221, what should you do? The stock -Select- v overvalued and Select y be purchased. Select d. If the beta coefficient declines to should he new value of the stock? Round your answer to the nearest cent. should not o. If the price remains $221, what course of action should you take given the valuation in d? The stock is -Select- and Select be purchased eBook Problem 11-05 Jersey Jewel Mining has a beta coefficient of 1. Currently the risk-free rate is 4 percent and the anticipated return on the mar dividend that is growing at 4 percent annually. Do not round intermediate calculations, a. What is the required return for JM? Round your answer to two decimal places. % b. Given the required return, what is the value of the stock? Round your answer to the nearest cent. $ c. If the stock is selling for $221, what should you do? The stock -Select overvalued and select be purchased d. If the beta coefficient declines to 0.7, what is the new value of the stock? Round your answer to the nearest cer $ e. If the price remains $221, what course of action should you take given the valuation in d? The stock is: -Select- and Select be purchased -Select- overvalued undervalued eBook Problem 11-05 Jersey Jewel Mining has a beta coefficient of 1. Currently the risk-free rate is 4 percent and the anticipated dividend that is growing at 4 percent annually. Do not round intermediate calculations. a. What is the required return for JJM? Round your answer to two decimal places. % b. Given the required return, what is the value of the stock? Round your answer to the nearest cent $ c. If the stock is selling for $221, what should you do? The stock -Select- vovervalued and -Select- be purchased. d. If the beta coefficient declines to 0.7, what is the new value of the stock? Round your answer to $ e. If the price remains $221, what course of action should you take given the valuation in d? The stock is -Select- vand -Select- V be purchased. Select should should not

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