18. Cosmic Canterberry's common stock is expected to pay a dividend $1.25 at the end of the year and continue to grow at 3% into the foreseable future. If investors require a 5% return what is the value of the stock today? a) $64.38 b) $62.50 c) $65.25 d) $59.50 9. The Francis Company's most recent dividend paid $1.25. Dividends are expected to grow at a constant rate of 6.00% per year. The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the company's current stock price? a) $32.67 b) $28.55 c) $30.64 d) $24.50 20. Frisco Fries has just produced an enhanced potato product. Last year its stock paid a meager dividend of $1.00 per share. The company is expected to increase dividends by 15% for the next two years and then level them off to 7% for the foreseeable future. If Frisco's' investor's require a 9% return what should their stock sell for today? a) $51.85 b) $64.03 c) $41.50 d) $32.66