Jersey Jewel Mining has a beta coefficient of 1.5. Currently the risk-free rate is 2 percent and the anticipated return on the market is 9 percent. JJM pays a $3.80 dividend that is growing at 8 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 $117, what should you do?

The stock -Select-is/is not overvalued and -Select-should/should not be purchased.

D. If the beta coefficient declines to 1.4, what is the new value of the stock? Round your answer to the nearest cent.

$___________

E. If the price remains $117, what course of action should you take given the valuation in d?

The stock is -Select-overvalued/undervalued and -Select-should/should not be purchased.