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Problems: Please be sure to show ALL of your WORK if you credit. WORK if you wish to receive entire 61. The stock of Healthy

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Problems: Please be sure to show ALL of your WORK if you credit. WORK if you wish to receive entire 61. The stock of Healthy Eating, Inc. has a beta of 1.35. The risk- return is 10.6 percent. What is the expected return on Healthy Eaum 35. The risk-free rate is 2.8 percent and the market return on Healthy Eating's stock? E(RHealthy Eating b. If all other assets that have a Beta=1.35 have an E(R) = 14%, is this asset overvalued or undervalued? Would you buy this asset - Yes or No and why? Musica Foods just paid an annual dividend of $1.20 a share. Management estimates the dividend will increase by 8 percent a year for the next five years. After that, the annual dividend growth rate is estimated at 3 percent. The required rate of return ir 1

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