11. The common stock of Andy's Sporting Goods sells for $25,40 a share. The company recently paid their annual dividend of $1.30 per share and expects to increase this dividend by 3 percent annually. What is the rate of return on this stock? a. 5.12 percent b. 5.27 percent c. 8.12 percent d. 8.27 percent 12. The Black & Gold Co. is expected to pay a $2.50 annual dividend next year. The market rate of return on this security is 12 percent and the market price is $31.40 a share. What is the expected growth rate of Black & Gold? a. 3.74 percent b. 3.89 percent c. 4.04 percent d. 4.12 percent 13. Battles, Inc. just paid an annual dividend of $1.20 a share. The dividend will increase by 3 percent for the next three years and then increase by 2 percent annually thereafter. What is the present value of this stock at a discount rate of 9 percent? a. $17.97 b. $18.52 c. $21.68 d. $22.33 14. Bottle Top, Inc. recently announced they will pay their first annual dividend next year in th amount of $0.75 a share. The dividend will be increased by 4 percent annually thereafter. How much are you willing to pay for one share of this stock if you require a 10 percent rate of return? a. $12.50 b. $13.83 c. $21.58 d. $22.91 15. The common stock of the Paper Co. is selling for $41.40 a share and offers an 8.2 percent rate of return. The dividend growth rate is constant at 4 percent. What is the expected amount of the next dividend? a. $1.67 b. $1.74 c. $1.81 d. $1.90