28) The CEO of Flying Carpet Transport, Inc. recently told financial analysts that he expects 28) the company's dividends to grow at a compound rate of 12 percent for three years and a rate of 8 percent thereafter. The most recent annual dividend (twelve months ago) was $1 per share. a. Assuming a required rate of return of 10 percent, what is the present value of a share of Flying Carpet common stock? b. You have learned that Flying Carpet common stock is selling today for $64.50 per share. Given your answer in part a. above and assuming that you require a 10 percent rate of return for similar investments, would you buy stock in Flying Carpet? 29) The WWF Co.'s common stock is currently selling at $33 per share, its quarterly 29) dividend is 75 cents, and the stock is expected to rise to $39 in a year. What is its expected rate of return? ) 30) 30) A security has the following distribution of possible one-year rates of return; Possible return: -3 percent O percent 43 percent 46 percent Probability: 0.2 0.3 0.3 0.2 Calculate the expected return and standard deviation for this security, 31) How much should you pay for the preferred stock of the Dakota Doorknob Company if it has $100 par value, pays $8.50 a share in annual dividends, and your required rate of return is 10 percent? 31)