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12. Shanz Enterprises has a beta of 1.28. The real risk-free rate is 2%, investors expect a 3% future inflation rate, and the market risk

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12. Shanz Enterprises has a beta of 1.28. The real risk-free rate is 2%, investors expect a 3% future inflation rate, and the market risk premium is 4.7%. What is Shanz's required rate of return? * O A. 11.016% O B. 9.670% O C. 9.920% D. 10.170% O E. None of the above 13. A stock just paid a dividend of DO = $1.50. The required rate of return is rs = 11.5%, and the constant growth rate is g = 4%. What is the current stock price? * = O A. $20.11 O B. $20.80 C. $24.31 O D. $24.93 O E. None of the above 14. If DO = $1.5, g (which is constant) = 3.6%, and PO = $32.00, what is the stock's expected total return for the coming year? * O A. 8.37% B. 8.45% C. 8.81% O D. 9.03% O E. None of the above 16. Banz Corporation just paid a dividend of DO = $0.75 per share, and that dividend is expected to grow at a constant rate of 4.5% per year in the future. The company's beta is 1.25, the required return on the market is 10.5%, and the risk-free rate is 4.5%. What is the company's current stock price? * A. $10.45 B. $10.89 C. $12.26 D. $12.64 E. None of the above 17. Panama's stock has a required return of 12%, and the stock sells for $40 per share. The firm just paid a dividend of $1, and the dividend is expected to grow by 30% per year for the next 4 years, so D4 = $1(1.30)4 = $2.8561. After t = 4, the dividend is expected to grow at a constant rate of X% per year forever. What is the stock's expected constant growth rate after t = 4, i.e., what is X?* A. 5.17% B. 5.44% O C. 5.72% O D. 6.34% E. None of the above 18. Dual Power Company is expected to pay a dividend of $4 next period, and dividends are expected to grow at 6% per year. If the required return is 16% and the current price (PO) is $40, what is the stock price at year 4 (P4)? * O A. $45.10 O B. $48.20 C. $50.49 O D. $52.30 O E. None of the above

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