30. Your broker recommends you purchase XYZ Inc. at $60, the current market price. The stock just paid a $2.40 dividend which is expected to grow annually at 8 percent. If the required return is 12 percent, how much could the market price risc before the stock is no longer undervalued? A. $2.40 B. $3.68 C. $4.79 D. $5.00 E. 50.00 it is fairly priced 31. Ronaldo > Messi Inc expects sales of $437,500 next year. The profit margin is 4.8 percent and the firm has a 30 percent dividend payout ratio. What is the projected increase in retained earnings? A. S14,700 B. $16,800 C. $18,300 D. $20,600 E. $21,000 32. Gordon Bombay invested $11,250 in an account that pays 6 percent simple interest. How much more could he have earned over a 7-year period if the interest had compounded annually? A. $62141 B. 5773.58 C. $940.84 D. 51,382.68 E. $1,823.28