6. Chesney Event Co. just paid a dividend of $0.35 on its ordinary shares. Due to the release of an exciting new product, this company's dividends are expected to grow at a constant rate of 3 percent per annum indefinitely. If shareholders require a rate of return of 10 percent, what is the current value of each share? a. $8.80 b. $10.09 c. $5.15 d. $4.63 7. If we ignore the possibility of part of a project's total risk being diversified away, we are considering the project's: a. systematic risk. b. contribution-to-firm risk. c. diversifiable risk. d. stand-alone risk. 8. The firm should accept a project if: a. the profitability index is greater than or equal to 1. b. the payback period is less than the life of the investment. c. the internal rate of return is positive. d. the internal rate of return is greater than the accounting rate of return