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Jersey Jewel Mining has a beta coefficient of 1.3. Currently the risk-free rate is 3 percent and the anticipated return on the market is 7 percent. JM pays a $4.60 dividend that is growing at

Jersey Jewel Mining has a beta coefficient of 1.3. Currently the risk-free rate is 3 percent and the anticipated return on the market is 7 percent. JM pays a $4.60 dividend that is growing at 4 percent annually. Do not round intermediate calculations. What is the required return for 33M? Round your answer to two decimal places. b. Given the required return, what is the value of the stock? Round your answer to the nearest cent. $ 5. If the stock is seling for $148, what should you do? The stock . overvalued and be purchased d. If the beta coefficient declines to 1.0, what is the new value of the stock Round your answer to the nearest cent. 5 . If the price remains 148, what count of action should you take given the valuation in The stock is Band be purchased

Apr 28 2021 View more View Less

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