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5 points 4. Jolie Corporation just paid a dividend of DO = $0.75 per share, and that dividend is expected to grow at a constant
5 points 4. Jolie Corporation just paid a dividend of DO = $0.75 per share, and that dividend is expected to grow at a constant rate of 4.50% per year in the future. The company's beta is 1.25, the required return on the market is 10.50%, and the risk- free rate is 4.50%. What is the * company's current stock price? a) $10.45 b) $10.89 c) $12.26 O d) $12.64 e) None of the above 1 poin 5. R&R Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $9.50 per share. If the required return on this preferred stock is 6.5%, at what price should the * stock sell? a) $104.27 b) $106.95 c) $109.69 d) $146.15 e) None of the above 6. R&R Company is expected to pay a 5 points dividend of $4 next period, and dividends are expected to grow at 6% per year. If the required return is 16% and the current price (PO) is 40$, what is the stock price at year 4 (P4)? * a) $45.1 b) $48.2 c) $50.5 d) $52.3 e) None of the above
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