The Aldridge Co. Is expected to grow at 6% into the indefinite future. It's latest annual dividend was 2.50. Treasury bills currently earn 7% and the s&p 500 yields 11 %.

A. What price should Aldridge shares command in the market if it's beta is 1.3?

B. Evaluate the sensitivity of Aldridge's price to change in expected growth rate varying beta between 5% and 7%