Problem $11-05$ 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.

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c$.$ If the stock is selling for $$110,$ what should you do$?$

The stock overvalued and be purchased.

d$.$ If the beta coefficient declines to $0\mathrm{.}8,$ what is the new value of the stock? Round your answer to the nearest cent.

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e$.$ If the price remains $$110,$ what course of action should you take given the valuation in $d?$

The stock is and be purchased.