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Jersey Jewel Mining has a beta coefficient of 1.4. Currently the risk-free rate is 2...

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Accounting

Jersey Jewel Mining has a beta coefficient of 1.4. Currently the risk-free rate is 2 percent and the anticipated return on the market is 8 percent. JJM pays a $4.30 dividend that is growing at 8 percent annually. Do not round intermediate calculations.
What is the required return for JJM? Round your answer to two decimal places.
%
Given the required return, what is the value of the stock? Round your answer to the nearest cent.
$
If the stock is selling for $216, what should you do?
The stock
-Select-
overvalued and
-Select-
be purchased.
If the beta coefficient declines to 1.3, what is the new value of the stock? Round your answer to the nearest cent.
$
If the price remains $216, what course of action should you take given the valuation in d?
The stock is
-Select-
and
-Select-
be purchased.
image

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