11 You expect that Red Dragon Corporation common stock in one year will be worth $41.77. In one year, Red Dragon Corporation will pay a $2.34 dividend per share on its common stock. What is the market value today of a share assuming your required return on equity investments is 17%? A $25.54 B $29.49 C $37.70 D $41.77 E $55.5412 Valentino's Inc. common stock today sells for $50.56 per share and commands a market rate of return of 14.65%. This stock pays an annual dividend which increases by 1.4% annually. What is the expected amount of the dividend to be paid in one year? A $6.70 B $6.79 C $6.89 D $6.99 E Cannot be calculated.1 3 leen a fixed stream of monthly income the: (9 Future value will decrease as the annuity payment increases. Future value will decrease as the time period increases. Future value will decrease as the interest rate decreases. Future value will increase if payments are made at the end of the period rather than the beginning. @ Remember to breathe. 14 Which one of the following is a correct definition? A A perpetuity is an infinite stream of equal payments which occur at the end of each time period. B An ordinary annuity is an infinite stream of equal payments which occur at the end of each time period. C A perpetuity is an infinite stream of unequal payments which occur at the end of each time period. D An ordinary annuity is a finite stream of equal payments which occur at the beginning of each time period. E Remember to breathe.15 To compare different investment opportunities with equivalent risk. you should compare the: Annual percentage rates. Annual nominal rates. Effective annual rates. Pre-tax quoted rates. @ Good luck