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HiI appreciate your help with these questions, please show your work: ) thank you! Question 1 : The market price of a firm s stock

HiI appreciate your help with these questions, please show your work:) thank you! Question 1: The market price of a firms stock is $40, the stocks expected return is 11%, and the firm pays a
constant dividend. If the risk-free rate is 2% and the market risk premium is 8%, then what will be the
price of the firms stock if its beta doubles? Question 2: Suppose that the risk-free rate of return is 1.5% and that the expected return on the market over the
next year is 8%. If a firm pays a constant dividend of $3.40 and has a beta of 0.6, then what is the
intrinsic value of one share of the firms stock?

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