20. Lotsa Lenses paid a dividend of $1.17 last year, and plans a dividend growth rate of 3.40% indefinitely. Lotsa's stock price is now $13.94. What return can Lotsa Lenses' investors expect on their stock? (a) 12.08% (b) 17.00% lo sol (c) 3.40% (d) 11.70% 21. A firm has a stock price of $50.25 per share. The firm's earnings are $90 million, and the firm has 25 million shares outstanding. The firm has an ROE of 18% and a plowback of 60%. What is the firm's PEG ratio? (a) 1.29 (b) 1.35 (c) 1.50 (d) 1.15 22. You buy a TIPS at issue at par for $2,000. The bond has a 2.5% coupon. Inflation turns out to be 1.5%, 2.5%, and 3.5% over the next 3 years. The total annual coupon income you will receive in year 3 is (a) $50.00 (b) $51.25 (c) $55.88 (d) $53.83