18. A companys common share has a price of $300, and the company will pay a dividend (D1) of dividend of $9. If the dividend is expected to grow at a constant rate, what would the growth rate be if the required rate of return is 15%? *

A. 10%

B. 12%

C. 15%

D. 8%

E. None of the above

19. Thames Inc.s most recent dividend was $2.40 per share (D0 = $2.40). The dividend is expected to grow at a rate of 6 percent per year. The risk-free rate is 5 percent and the return on the market is 9 percent. If the companys beta is 1.3, what is the price of the stock today? *

A. $60.57

B. $72.14

C. $40.00

D. $76.12

E. None of the above

20. The last dividend (D0) of stock Y was $3.00 and g (which is constant) = 6%. If the stock price is $90, what is the stocks expected dividend yield for the coming year? *

A. 3.53%

B. 4.54%

C. 4.53%

D. 5.53%

E. None of the above