10. An issue of preferred stock pays an annual divid 8.1% return. The value of this firm is closest to: stock pays an annual dividend of $4.29 while the firm's preferred shareholders require a. $43.82 b. $52.96. c. $58.03. d. $62.73 1. Blue Packaging Company (BPC) expects to nava dividend of $1.28 in exactly one year. BPC has recenty investu multiple wealth increasing projects and exnects its operating cash flow to increase dramatically for a few years. BPC expects a dividend growth rate of 50% during years 2.3 and 4. After that high growth period, a normal growth rate of 3.1% will occur. BPC shareholdere require a 14.79% return. The BPC stock price is closest to: a. $29.14. b. $31.82. c. $33.91. d. $45.46. 12. A firm's use of debt and preferred stock affects which of the following? a. Financial risk. b. Degree of operating leverage. C. Market risk. d. Business risk. 13. Harvey Industries Pays a current dividend of $6.10 and shareholders require a 12% return. The dividend will grow at a high rate of 20% and then gradually decline to 5% over a six-year period. The value of Harvey Industries shares using the H Model is closest to: a. $121.39. b. $127.74 C. $130.71. d. $137.93