Question 14: You have just done a regression of monthly stock returns of Royal Inc., on monthly market returns over the past five years and have come up with the following regression: R = 0.04+ 1.4 RM The variance of the stock is 50%, and the variance of the market is 20%. The current risk-free rate is 4% and the Rm is 8.76%. The stock is currently selling for $50, down $4 over the past year; it has paid a dividend of $2 during the past year and expects to pay a dividend of $3 over the next year. Royal Inc. has a tax rate of 40%. how much do you expect Royal Inc. price will be one year from now before ex-dividend date? $52.13 $55.63 $58.13 $58.63