Two stocks each currently pay a dividend of $1.40 per share. It is anticipated that both firms' dividends will grow annually at the rate of 4 pe has a beta coefficient of 0.96 while the beta coefficient of firm B is 1.27 aIf U.S. Treasury bills currently yield 4.5 percent and you expect the market to increase at an annual rate of 8 percent, what are the these two stocks using the dividend-growth model? Do not round intermediate calculations. Round your answers to two decimal pla Stock A: $ Stock B: b. Why are your valuations different? The beta coeficient of Select is higher, which indicates the stock's returm is (Solact c. If stock A's price we stock A stock'B's price were $41, what would you do? Stock A is Selectand Selectbe purchased. Stock B is Slctand Seletbe purchased. is higher, which indicates the stock's return ist-selectn volatile. volatile stock B