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9. LSP Co.'s stock price is $58.88, and it recently paid a $2.00 dividend. This dividend is expected to grow by 25% for the next 3 years, then grow forever at a constant rate, g; and rs = 12%. At what constant rate is the stock expected to grow after Year 3? * a) 9.5% b) 6.25% c) 15.75% d) 33.33% e) None of the above 15. Delta's stock has 30% chance of producing a 15% return, a 40% chance of producing a 10% return, and a 30% chance of producing a 2% return. What is the firm's expected rate of return? * a) 7.8% b) 8.2% c) 9.1% d) 10.2% e) None of the above 16. You own a portfolio (XYZ) that is 40% invested in stock X. 35% in stock Y and 25 % in stock Z. The betas of these stocks are 1, 0.8 and 1.2 respectively. What is the beta of this portfolio? * a) 0.66 b) 0.78 c) 0.98 d) 1.18 e) None of the above 17. Board-X is considering an investment that has an expected return of 12% and a standard deviation of 7%. What is the investment's coefficient of variation? * a) 0.58 b) 0.72 c) 0.85 O O d) 0.92 e) None of the above 18. ABC Corporation wishes to determine the required return on asset Z, which has a beta of 1.5. The risk-free rate of return is 7%; the return on the market portfolio of assets is 11%. What is the required rate of return using CAPM? * a) 11% b) 13% c) 14% d) 15% e) None of the above 19. An issue of preferred stock is paying an annual dividend of $1.50. The growth rate for the firm's common stock is 5%. What is the preferred stock price if the required rate of return is 7%?* a) $21.43 b) $30.00 c) $22.50 d) $50.32 e) None of the above 20. An issue of common stock's most recent dividend is $1; its growth rate is 5%. What is its price if the required rate of return is 10%? a) $21 b) $87.5 c) $92.5 d) $0 O e) None of the above