31. The common stock of Cranberry Inc. is selling for $22.60 on the open market. Next year's dividend is expected to be $2.50, and the growth rate of this company is estimated to be 7% for the forseeable future. If you are considering purchasing this stock at the market price, what is your expected rate of return? a. 11.05%. b. 14.0896. C. 18.06%. d. 19.52%. 32. Winnimar Inc. just paid a dividend of $6.95 on its common stock at the end of last year. You expect dividends per share next year will be S6.17 and S6.47 the year after that. You believe you can sell the stock in two years for $107.29. If your required rate of return on this stock is 18%, how much are you willing to pay for the stock today? a. $103.57 b. $95.03 c. $86.93 d. $77.13 33. In terms of the costs to organize each, which of the following sequences is correct, moving from lowest to highest cost? a. corporation, limited partnership, general partnership, sole proprietorship b. sole proprietorship, general partnership, corporation, limited partnership c. general partnership, sole proprietorship, limited partnership, corporation d. sole proprietorship, general partnership, limited partnership, corporation 34. Waverly Corp. is undergoing a major expansion. The expansion will be financed by issuing new 25-year, $1,000 par, 6% semiannual coupon bonds. The market price of the bonds is $975 each. Waverly's flotation expense on the new bonds will be $75 per bond. What is the pre-tax cost of debt for the newly-issued bonds? a. 6.84% b. 7.32% c. 8.13% d. 9.45% 9 of 11