10. Better Life Nursing Home, Inc. has maintained a dividend payment of $3 per share for many years. The same dollar dividend is expected to be paid in future years (or perpetuity). If investors require a 12% rate of return on investments of similar risk determine the value of the company's stock Choice: $15.00 Choice: $25.00 Choice: $33.33 Choice: $36.20 ok price is $15.75 equired rate of return ins yield) for the 11. Lucas Clinie's last dividend Do was $1.50. Its current equilibrium stock price is and its expected growth rate is a constant 6%. If the stockholders' required rate o is 16%, what is expected total return vield (dividend yield and capital gains yield) coming year? Choice: 5.0% Choice: 10.0% Choice: 12.5% Choice: 16.0% 12. St John Medical, a surgical equipment manufacturer, has been hit hard by increased competition. Analysts predict that earnings and dividends will decline at a rate of 5% annually into the foreseeable future. If the firm's last dividend (Do) was $2.50 and the investors' required rate of return is 16%, what will be the company's stock price in three years? Choice: $6.15 Choice: $9.70 Choice: $20.00 Choice: $12.45 13. Human's Inc.'s last dividend (DO) was $1.50, and its earnings and dividends are expected to increase at a constant growth rate of 4%. Humana's market beta is 1.8. If the current risk-free rate is 5% and the required rate of return on the market portfolio is 12%, what is the company's current expected stock price? Choice: $7.50 Choice: $9.58 Choice: $11.47 Choice: $17.89