The risk-free rate of return is 2 percent, and the expected return an the market is 8.1 percent. 5 tock A has a beta coetficient of 1.6 , an eaenings and divisend gronth rate of 4 percent, and a curtent dividend of $3.00 a share. Do not round intermediate calculations, Round your answers to the nearest cent. a. What should be the morket price of the stock? 3 B. If the current market price of the stock is 155.00 , what should you do? The stack be purchased. c. If the expected teturn on the market rises to 10.1 percent and the other variobles remain constant, whot wit be the value of the stock? d. If the risk.free return nises to 4.5 percent and the return on the market rises to 10.3 gercent, what will be the value of the stock? 6. If the beth coefficient falis to 1.4 and the other variabies remain conutent, what wil be the value of the thock? 1. Explain why the stocki value changes in e through e. The ineresse in the return en the maiket Whe requed inturn and the vakive of the stock. The increase in the nik-tree rate and the simultaneous increase in the return on the makke cause the value tof tien stack to The decrense in the beta coefficient cavies the firm to become noky hs menured by beta, which The value of the itock