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 2 percent. Firm A has a beta coefficient of 1.07 while the beta coefficient of firm B is 0.67. a. If U.S. Treasury bills currently yield 3.8 percent and you expect the market to increase at an annual rate of 9 percent, what are the valuations of these two stocks using the dividendgrowth 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 is higher, which indicates the stock's return is is c. If stock A's price were $33 and stock B's price were $48, what would you do? Stock A is and burchased. Stock B is and be purchased