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A firm is expected to produce a constant annual rate of dividend growth of 6 percent. The most recent dividend to be paid was $2.70.

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A firm is expected to produce a constant annual rate of dividend growth of 6 percent. The most recent dividend to be paid was $2.70. An investor has a 13 percent required return on this investment. The value of a share of the firm's common stock is O $46.37 $40.89 O $35.78 O $33.75 TGN Corporation generated FCF of $1,200,000 in the most recently completed year. FCF is expected to grow a 7% this year, 6% in year 2 and 5% in year 3. Beginning in year 4, FCF will become constant at 4%. The company has $2,500,000 of debt, $900,000 of preferred stock, and 500,000 common shares outstanding. With a required return of 15%, what is a share of TGN's common stock worth today? $17.13 O $29.71 O $37.15 O $24.23 What is the standard deviation of the following distribution: Probability Possible Outcome .20 19% .65 13% .15 -8% 8.5% 7.8% 8.1% 8.3%

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