4-Sumaia Corporation has an expected Return on equity (ROE) of 15%. If it pays out 30% of its earnings as dividends, its dividend growth rate will be a. 4.59 b. 10.5% c. 15% d. 30% 5. Firms with higher expected growth rates tend to have P/E ratios that are the P/E ratios of firms with lower expected growth rates. a higher than b. equal to c. lower than 6- If a firm has a free cash flow equal to $50 million and that cash flow is expected to grow at 3% forever, what is the total firm value given a WACC of 9.5%? a. $679.81 million b. $715.54 million c. $769.23 million d. $803.03 million 7- Beta is an absolute measure of risk a. True b. False 8- The of an industry is a function of retention rate and return on equity. a. expected return b. expected business risk c. expected financial risk d. expected growth rate c. expected sales volatility