Problem 11-05 Jersey Jewel Mining has beta coefficient of 1 2. Currently the risk-free rate is 1 percent and the anticipated return on the markets 6 percent. JM pays $5.50 dividend that is growing at 3 percent annually. Do not round intermediate calculations a. What is the required return for M2 Round your answer to two decimal places . Given the required return, what is the value of the stock? Round your answer to the nearest cent 5 If the stock i selling for $161, what should you do? The stock overvalued and elect be purchased d. If the beas coefficient declines to 0.9. what is the new value of the stock Round your answer to the nearest cent If the price remains $161, what course of action should you take given the valuation in The stock is Select and Select be purchased Problem 11-01 The dividend-growth model may be used to value a stock: V D. (1+9) ko Round your answers to the nearest centi What is the value of a stock ift DoM7.40 11% 61% S what is the value of this stock of the dividend increased to $6.00 and the other variables remain constant? 5 c. What is the value of this stock if the required return declines to 7 percent and the other variables remain constant? d. What is the value of this stock if the growth rate declines to 4 percent and the other variables remain constant? 5 e. What is the value of this stock if the dividend is increased to $5.10, the growth rate declines to 4 percent, and the required return remains 11 percent