The risk-free rate of return is 1 percent, and the expected return on the market is 8.2 percent. Stock A has a beta coefficient of 1.5, an earnings and dividend growth rate of 7 percent, and a current dividend of $2.80 a share. Do not round intermediate calculations. Round your answers to the nearest cent.
$
The stock be purchased.
The increase in the return on the market the required return and the value of the stock.
The increase in the risk-free rate and the simultaneous increase in the return on the market cause the value of the stock to .
The decrease in the beta coefficient causes the firm to become risky as measured by beta, which the value of the stock.
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