Problem 11-06 The risk tree rate of returns 2 percent, and the expected return the market 85 percent. Stock A has a beta coefficient of 1.6, an caring and dividend growth rate of 5 percent, and current dividend of $1.50 a shore. Do not round intermediate calculations Sound your answers to the nearest cent a. What should be the market price of the stock? $ t. If the current market price of the stock $33.00, what should you do? The stock w be purchased If the expected return on the market is to 11 percent and the other area constant what will be the value of the stock three mises to 3.5 percent and the return on the market mes to 12.4 percent, what will be the value of the Mack 5 c. If the contato 13 and the the variables constant, what will be the value of the stock $ Explom why the value changes in through The increase in the mos the market the red strand The increase in the street and the simultaneos in the return on the market is the value of the work tomat The decrease in the beta confit causes them to become risky asmeasured by the