15) Which of the following is/are examples of systematic risk? A) The risk that oil prices rise, increasing production cos ts 0) The risk that the economy slows, reducing demand for your firm's products D) All of the above E) None of the above B) The risk that the Federal Reserve raises interest rates The next three problems refer to Roadrunner Enterprises. Roadrunner Enterprises is expected to grow its dividends and earnings at various rates. The company just pald a $1.00 dividend. The company expects to grow its earnings and dividends at 13% for the next two years, and th en the company expects to grow at 10% for the following three years after which the company expects to grow at a constant rate of 7% per year indefinitely. The required rate of return on Roadrunner's common stock is 13%. 16. What is the present value of the frst five years' dividends? A) Less than $3.00 B) $3.00 to $4.00 C) $4.00 to $4.50 D) $4.50 to $5.00 E) More than $5.00 17. What is the present value of the "residual"? ( of the stock when the constant growth be (The 'residual" is the FMV A) Less than $20.00 gins.) B) $20.00 to $25.00 C) $28.00 t0 $38.00 D) $36.00 to $5000 E) More than $50.00 is the Yair Market Value (PMV) of the atook nowe cunt: the PV of the hre, nve years dividends and the PV of the residual) PMV is The B) $25.00 to $50.00 C) $30.00 to $40.00 D) $40.00 to $60.00 2) More than $60.00