A firm's book value is: o equal to assets minus liabilities on the balance sheet o equal to assets minus long-term liabilities from the balance sheet o equal to current PE ratio multiplied by earnings from the income statement O none of the above QUESTION 5 A stock paying $5 in annual dividends sells now for $80 and has an expected return of 14%. What might investors expect to pay for the stock one year from now? Hint: Use the holding period return equation. O $82.20 O $86.20 O $87.20 O $91.20 QUESTION 6 What is the expected dividend to be paid in year 3 if year o dividend is $6.00 and dividends are expected to grow at a constant 6% annual rate? O $6.75 O $7.15 O $7.80 O $9.37 QUESTION 7 A company has net income/share of $5. If the payout ratio is 20%, what are the dividends per share? O $1 O $4 O $5 O not enough information