Two stocks each currently pay a dividend of $1.20 per share. It is anticipated that both firms' dividends will grow annually at the rate of 4 percent. Firm A has a beta coefficient of 1.04 while the beta coefficient of firm Bis 1.18. a. If U.S. Treasury bills currently yield 5 percent and you expect the market to increase at an annual rate of 8.8 percent, what are the valuations of these two stocks using the dividend-growth model? Do not round intermediate calculations. Round your answers to two decimal places. Stock A: $ Stock B: $ b. Why are your valuations different? The beta coefficient of -Select-vis higher, which indicates the stock's return is -Select- volatile. c. If stock A's price were $49 and stock B's price were $49, what would you do? Stock A is -Select- Vand -Select- be purchased. Stock B is -Select- Vand -Select- be purchased