14) Smith Corporation's preferred stock has a par value of $40, pays an annual dividend of $2.00 per share and currently sells for $30. What is the approximate annual required rate of return on this stock? A) 2596 B) 6.6796 C) 5.00% D) 33.33% 15) Judy is considering purchasing common shares of Alitalia Air. What price would she be willing to pay per share if the company is projected to pay S6 in dividends per share next year, dividends are expected to grow at 2% per year thereafter, and Judy requires an annual return of 13% on this investment? A) $47.08 B) $46.15 C) $55.64 D) $54.55 16) Last year, Andrew bought 100 common shares of VVC Corporation at a price of $125 per share. Today, he received $7 in dividends per share. The stock is currently trading at $133 per share. If Andrew sells his stocks now, what rate of return would he earn on this investment assume there are no trading costs)? A) 11.28% B) 12.00% C) 5.60% D) 6.40% 17) Given the following information, which stock would a rational, risk-averse financial manager select? Stock Expected return, % St. deviation, % A) Stock A B) Stock B C) Stock C n Stock D