9. Assume the data below for Drama Corporation. What is the bo Delow for Drama Corporation. What is the book value per share for Drama Corporation Stockholder's Equity Preferred stock, $100 par, 10,000 shares $1,000,000 Common stock, $10 par, 50,000 shares 500,000 Additional paid in capital on common stock 100,000 Retained earnings 1,200,000 Total Stockholders' Equity $2,800,000 a. $10. b. $34. c. $36. d. $56. 10. An issue of preferred stock pays an annual dividend of $4.29 while the firm's preferred shareholders require an 8.1% 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 recent 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