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Problem 11-06 The risk-free rate of return is 3 percent, and the expected return on the market is 7.6 percent. Stock A has a beta

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Problem 11-06 The risk-free rate of return is 3 percent, and the expected return on the market is 7.6 percent. Stock A has a beta coefficient of 1.7, an earnings and dividend growth rate of 4 percent, and a current dividend of $1.80 a share. Do not round intermediate calculations. Round your answers to the nearest cent. a. What should be the market price of the stock? b. If the current market price of the stock is $5.00, what should you do? be purchased. The stod -Select- should c. If the ex should not the market rises to 15.4 percent and the other variables remain constant, what will be the value of the stock? $ d. If the risk-free return rises to 6 percent and the return on the market rises to 15.8 percent, what will be the value of the stock? $ e. If the beta coefficient falls to 1.5 and the other variables remain constant, what will be the value of the stock

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