a) A stock is expected to pay a dividend of $2.75 at the end of the year (i.e., D= 2.75), and it should continue to grow at a constant rate of 5% a year. If its required return is 15%, what is the stock's expected price? b) Universal Stars company is a no growth firm and has two million shares outstanding. It is expected to earn a constant 20 million per year on its assets. If all earnings are paid out as dividends and the cost of capital (required return on its stock) is 10%, calculate the price per share for the stock. Question 2: a) Wynners com. is expected to pay a dividend of $2 per share at the end of year (D1) and the dividends are expected to grow at a constant rate of 4% forever. If the current price of the stock is $20 per share, calculate the expected return or the cost of equity capital for the firm. b) Suppose a firm has of $150 million of common stock, has $25 million of preferred stock, and $75 million of debt. Cost of debt, ra=10% (before tax) Cost of preferred stock, rp = 9% Cost of common stock, rs= 13% what is the firm's weighted average cost of capital (WACC), if the tax rate equals34%?