5) 5) A stock paying $5 in annual dividends currently sells for $80 and has an expected return of 14%. What might investors expect to pay for the stock one year from now? A) $87.20 B) $86.20 C) $91.20 D) $82.20 6) In a year in which common stocks offered an average return of 18%, Treasury bonds 6) offered 10%, and Treasury bills offered 7 90. The risk premium for common stocks was: A) 8%. B) 3%. C) 11%. D) 1 %. 7) What is the IRR for a project that costs $100,000 and provides annual cash inflows of 7) $30,000 for 6 years starting one year from today? A) 15.84% B) 16.67% C) 22.09% D) 19.91% 8) What nominal return was received by an investor when inflation averaged 3.46% and 8) the real rate of return was 2.5%? A) 5.96% B) 0.96% C) 5.47% D) 6.05%