Problem 11-08 Two stocks each currently pay a dividend of $1.80 per share. It is anticipated that both firms' dividends will grow annually at the rate of 6 percent. Firm A has a beta coefficient of 0.83 while the beta coefficient of firm B is 0.73. a. If U.S. Treasury bills currently yield 4 percent and you expect the market to increase at an annual rate of 8.5 percent, what are the valuations of these two stocks using the dividend-growth model? Do not round intermediate calculations. Round your answers to two decimal places. Stock A: $ Stock B: $ b. Why are your valuations different? The beta coefficient of -Select- is higher, which indicates the stock's return is -Select- volatile. c. If stock A's price were $51 and stock B's price were $43, what would you do? Stock A is -Select- and -Select- be purchased. Stock B is -Select- and -Select- be purchased