ebook Problem 11-08 Two stodes each currently pay a dividend of $2.20 per share. It is anticipated that both firms dividends will grow annually at the rate of 3 percent. Firm A has a beta coefficent of 1.02 while the beta coefficient of firm is 1.13. If U.S. Treasury bills currently vield 3.2 percent and you expect the market to increase at an annual rate of 8.4 percent, what are the valuations of these two todes using the dividend growth model? Do not round Intermediate calculation, Round your answers to two decimal places Stocks Stocks b. Why are your valuations different The beta coefficient of satis higher, which indicates the stock's return ist volatile If stock A's price were $52 and stock B's price were $46, what would you do? Stock A i Salt and clict be purchased Stock B is dat and select be purchased eBook Problem 11-08 Two stocks each currently pay a dividend of $2.20 per share. It is anticipated that both firms dividends will grow annu coefficient of 1.02 while the beta coefficient of firm Bis 1.13. a. If U.S. Treasury bills currently yield 3.2 percent and you expect the market to increase at an annual rate of stocks using the dividend-growth model? Do not round intermediate calculations. Round your answers to t Stock A: $ Stock B: $ b. Why are your valuations different? The beta coefficient of Select is higher, which indicates the stock's return is -Select- volatile. c. If stock A's price we stocka stock B's price were $46, what would you do? stock B Stock A is Select and Select v] be purchased. Stock B is Select and Select | be purchased Select CD eBook Problem-11-08 Two stocks each currently pay a dividend of $2.20 per share. It is anticipated that both firms dividends will grow annually at the rate of 3 percent. Firm A has a bela coefficient of 1.02 while the beta coefficient of firm Bis 1.13. a. If U.S. Treasury bills currently yield 3.2 percent and you expect the market to increase at an annual rate of 8.4 percent, what are the valuations of these two stocks using the dividend growth moder? Do not round Intermediate calculations. Round your answers to two decimal places Stock A: $ Stock B: 3 b. Why are your valuations different? The beta coefficient of Socis higher, which indicates the stock's returnere volatile c. If stock As price were $52 and stock B's price were $46, what would you do me Stock Ais Select and Select be purchased Stock Bis Select vand.Select be purchased eBook Problem 11-08 Two stocks each currently pay a dividend of $2.20 per share. It is anticipated that both firms dividends will gro coefficient of 1.02 while the beta coefficient of firm Bis 1.13. a. If U.S. Treasury bills currently yield 3.2 percent and you expect the market to increase at an annual stocks using the dividend-growth model? Do not round intermediate calculations. Round your answer Stock A: $ Stock B: $ b. Why are your valuations different? The beta coefficient of -Select-vis higher, which indicates the stock's return is-Select- volatile. c. If stock A's price were $52 and stock B's price were $46, what would you do? Stock A is Select and Select be purchased. -Select- Stock B is undervalued and Select be purchased overvalued eBook Problem 11-08 wo stocks each currently pay a dividend of $2.20 per share. It is anticipated that both firms dividends will grow annually at the rate of 3 percent. Firm oefficient of 1.02 white the beta coefficient of firm Bis 1.13. a. If U.S. Treasury bills currently yield 3.2 percent and you expect the market to increase at an annual rate of 8.4 percent, what are the valuation stocks using the dividend-growth model? Do not round intermediate calculations. Round your answers to two decimal places Stock A: $ Stock : $ b. Why are your valuations different? The beta coeffident of select is higher, which indicates the stock's return is Belect volatile. c. If stock A's price were $52 and stock B's price were $46, what would you do? Stock Als-Select and Select be purchased. Select Stock B is -Select- v and should be purchased should not eBook Problem 11-08 Two stocks each currently pay a dividend of $2.20 per share. It is anticipated that both firms dividends will grow annually at coefficient of 1.02 while the beta coefficient of firm Bis 1.13. a. If U.S. Treasury bills currently yield 3.2 percent and you expect the market to increase at an annual rate of 8.4 pem stocks using the dividend-growth model? Do not round intermediate calculations. Round your answers to two deci Stock A: $ Stock B: $ b. Why are your valuations different? The beta coefficient of - Select is higher, which indicates the stock's return is-Select- volatile. C. If stock A's price were $52 and stock B's price were $46, what would you do? Stock A is Select vand -Select be purchased. Stock B is: -Select and Select | be purchased -Select- undervalued overvalued eBook Problem 11-08 Two stocks each currently pay a dividend of $2.20 per share. It is anticipated that both firms dividends will grow annually at the rate of coefficient of 1.02 while the beta coefficient of firm B is 1.13. a. IFU.S. Treasury bills currently yield 3.2 percent and you expect the market to increase at an annual rate of 8.4 percent, what stocks using the dividend-growth model? Do not round intermediate calculations. Round your answers to two decimal places, Stock A: $ Stock B: $ b. Why are your valuations different? The beta coefficient of select is higher, which indicates the stock's return is-Select- volatile. c. If stock A's price were $52 and stock B's price were $46, what would you do? Stock A ls -Select- and Select be purchased be purchased. Stock Bis -Select- Vand -Select -Select- should should not