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dividend is expected to grow at some constage The stock currently sells for $a share 15. You are considering an investment in the common stock of Cowher Corp. The mock is expected to pay a dividend of 52 per share at the end of the year ie. D. - $2.0). The stock hasta equal to 1.2. The risk-free rute in 6 percent. The market rink premium a 5 percent. There e the end of three years? (In other words, what is P7) a $40.00 b. $42.35 $45.67 d. $46.31 e. $49.00 C 16. A firm expects to puy dividends at the end of each of the next four years of $2.00, $1.50.52.50. and $3.50. If growth is then expected to level off at 8 percent, and if you require a 14 percent rate of return, how much should you be willing to pay for this stock? a $67.81 b. $22.49 c. $58.15 d. S31.00 e. $43.97 17. Suppose you are willing to pay $30 today for a share of stock which you expect to sell at the end of one year for $32. If you require an annual rate of return of 12 percent, what must be the amount of the annual dividend which you expect to receive at the end of Year 1? $2.25 b. $1.00 $1.60 d. $3.00 c. $1.95 a c 18. Yesterday BrandMart Supplies paid its common stockholders a dividend equal to $3 per share. Brand Mart expects to pay a 55 per share one year from today. After the $5 dividend is paid, the company expects its growth rate will remain constant at 4 percent per year forever. If BrandMart's investors demand a 12 percent rate of return, what should be the current market price of the company's stock? a $62.50 b. $65.00 c. $62.27 d. $37.50 e. None of the above is correct. 19. Calculate the standard deviation of the expected dollar returns for Ditto Copier Center, given the following distribution of returns Probability 0.2 $50 0.3 $20 03 -$15 Return a. $36.0 b. $23.0 c. $18.0 d. $13.0 e. $30.0 20. Consider the following info Scientific Investment Fund

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