2) A stock is expected to pay a dividend of $0.75 at the end of the year (D1 = $0.75). The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's expected price two years later?

a. $16.39

b. $17.84

c. $18.29

d. $19.22

e. $20.71

5) Carter's preferred stock pays a dividend of $1.00 per quarter. If the price of the stock is $45.00, what is its annual required rate of return?

a. 8.03%

b. 8.24%

c. 8.45%

d. 8.67%

e. 8.89%

6)The Francis Company is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. 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. $28.90

b. $29.62

c. $30.36

d. $31.12

e. $31.90