Jersey Jewel mining has a beta coefficient of 1.6 currently the risk free rate is 4% in the anticipated return on the market is 8%.

Jersey Jewel Mining has a beta coefficient of 1.6. Currently the risk-free rate is 4 percent and the anticipated return on the market is 8 percent. J3M pays a $5.10 dividend that is growing at 7 percent annually. Do not round intermediate calculations. a. What is the required return for JMM? 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 $195, what shouid you do? The stock overvalued and be purchased. d. If the beta coefficient declines to 1.3, what is the new value of the stock? Round your answer to the nearest cent. 5 e. If the price remains $195, what course of action should you take given the valuation in of? The stock is and be purchased