12. Alinm expects to pay dividends at the end of each of the next four years of $2.00. $1.50, $2.50, and $3.50. After year 4 growth is expected to be a constant 8 percent rate. If you require a 14 percent rate of return how much should you be willing to pay for this stock . 30.12 b. $43.97 c. $31.00 d. $67.81 e. $22.49 B ehf 11. You are given the following data: (1) (2) (3) (4) (5) The risk-free rate is 5 percent. The required return on the market is 8 percent, The expected growth rate for the firm is 4 percent. The last dividend paid was $0.80 per share. Beta is 1.3. Now assume the following changes occur. (1) (2) The inflation premium drops by 1 percentage point. An increased degree of risk aversion causes the required return on the market to go to 10 percent after adjusting for the changed inflation premium The expected growth rate increases to 6 percent. Beta rises to 1.5. (3) (4) What will be the change in price per share, assuming the stock was in equilibrium before the changes? a. O$16.97 b. +$12.11 c. +$6.28 d +$2.78 e. $4.87