5. If D-S2.00 and constant growth rate is 6%, and the current price of the stock is $40 what is the expected return of the stock for the coming year? a. b. . d. 9.8% 10.3% 11.0% 11.3% e Jones Company plans to issue preferred stock with a perpetual annual dividend of Ss per share and is currently selling at $50. What is the cost of preferred stock? a. 896 b. 8.9% c.10% d. 10.5% 6. Th 7. Heino Inc. hired you as a consultant to help them estimate the cost of capital. You have been provided with the following data. Risk-free rate is 5%, market risk premium is 5% and the beta is 1.1. S%+(1145%) 10.50% 10.71% 10.88% 11.03% c. d. 8. The NPV profile: a. shows the payback period- the point at which NPV is positive b. shows the internal rate of return the point at which NPV is zero. c. shows the NPV over a range of discount rates. d. B and C are correct 9. What key information is needed to measure the overall risk of a company's stock? Stock price a. b. Earnings per share volatility The company's bond rating d) The company's beta 10. Which is the best measure of risk of an asset held in a diversified portfolio? a. Variance b Standard deviation c. Beta d. Correlation coefficient. e. Coefficient of varation