13. You wish to earn a return of 12% on each of two stocks, A and B. Each of the stocks is expected to pay a dividend of $2 in the upcoming year. The expected growth rate of dividends is 9% for stock A and 10% for stock B. The intrinsic value of stock A A. will be greater than the intrinsic value of stock B. B. will be the same as the intrinsic value of stock B. C. will be less than the intrinsic value of stock B. D. will be the same or greater than the intrinsic value of stock B. E. None of the options 14. Xlink Company has an expected ROE of 15%. The dividend growth rate will be _ follows a policy of plowing back 75% of earnings. if the firm A. 3.75% B. 11.25% C. 8.25% D. 15.0% 15. A preferred stock will pay a dividend of $3.00 in the upcoming year and every year thereafter: i.e. dividends are not expected to grow. You require a return of 9% on this stock. Use the constant growth DDM to calculate the intrinsic value of this preferred stock, A. $33.33 B. $0.27 C. $31.82 D. $56.25