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Question 10Which of the following changes will make the value of a stock godown, other things being held constant?The required return increases.The required return decreases.The growth rate of dividends increases.In general, investors become less risk averse.Question 3Stock A has the following returns for various states of theeconomy:State ofthe Economy Probability Stock A's ReturnRecession 5% -15%Below Average 25% -2%Average 40% 9%Above Average 25% 14%Boom 5% 15%Stock A's expected return is:6.60%7.35%8.35%8.85%Question 1Emery Company is expected to pay a dividend of $2.25 per share.The company's stock is currently selling for $60 per share, and therequired rate of return on Emery Company stock is 16%. What is thegrowth rate expected for Emery Company dividends assuming constantgrowth?13.92%11.81%12.25%13.63%