8. A large internation stitution is expected to market value is pay a $10.16 dividend in one year. The growth rate is The shareholders required return is closest to 1.996 and tional financial % and the institution's curre a 5.6% b. 7.89 c. 10.5% d 11.996 Drama Corporation. What is the book value per share for Drama Corporation 9. Assume the data below folder's Equity $1.000.000 500,000 100,000 1,200,000 Retained earnings $2,800,000 Total Stockholders' Equity Stockholder's Ea Preferred stock $100 par 10,000 shares Common stock. $10 par. 50,000 shares Additional paid in capital on common stock h. C d. $10. $34. $36 $56. 10. An issue of preferred stock pays an annual dividend of $4.29 while the firm's preferred shareholders require an 8.196 return. The value of this firm is closest to: a $43.82. b. $52.96 C $58.03 d. $62.73 11. Blue Packaging Company (BPC) expects to pay a dividend of $1.28 in exactly one year. BPC has recently invested in multiple wealth increasing projects and expects its operating cash flow to increase dramatically for a few years. BPC expects a dividend growth rate of 50% during years 2, 3, and 4. After that high growth period, a normal growth rate of 3.1% will occur. BPC shareholders require a 14.7% return. The BPC stock price is closest to: a. $29.14 b. $31.82 c. $33.91. d. $45.46. 12. A firm's use of debt and preferred stock affects which of the following? a. Financial risk. b. Degree of operating leverage. c. Market risk. d. Business risk. 13. Harvey Industries Pays a current dividend of $6.10 and shareholders require a 12% return. The dividend will grow at a high rate of 20% and then gradually decline to 5% over a six-year period. The value of Harvey Industries shares using the H Model is closest to: a. $121.39. b. $127.74. c. $130.71. d. $137.93