A sole proprietorship: A. has a limited life B. can generally raise large sums of capital quite easily c. can transfer ownership of the firm more easily than a corporation can. D. Is taxed the same as a C corporation. E. is the most regulated form of organization. Suppose a firm just paid a $2 dividend 5 minutes ago, and dividends are expected to grow at 5% per year. What is the firm's price if its required return on equity is 12% ? A. $16.67 Past dividends (e.g., 5 minutes ago) B. $28.57 do not get incorporated in to the C. $17.50 price but we sometimes need them D. $30.00 to find D1. P0=rgD0(1+g)=rgC1 Near future dividends (e.g., next 30 seconds) are tacked on but not discounted P0=rgD1+D0