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Stock PQR is expected to provide a constant annual dividend of $4 forever, i.e., there is zero growth expected in the future. PQR is trading

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Stock PQR is expected to provide a constant annual dividend of \$4 forever, i.e., there is zero growth expected in the future. PQR is trading for a price of $40 on the exchange (assume the market is efficient and all stocks are priced in equilibrium.) The risk-free rate is 4% and the expected market retum is 12%. Assuming that all other variables remain at their original values and the beta of the stock doubles, what is the percentage change in the price of Stock PQR? A. +60% B. +37.50% C. 60% D. 3750% E. None of the above E D A c

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