Assume ABC Company just paid a dividend of $1.00. ABC is planning to increase its dividend by 3% per year from now on. If the market requires a return of 22% on assets of this risk, how much should the stock be selling for? Select one: a. $7.42 b. $5.42 O c. $10.42 O d. $5.00 Assume ABC Company wants to maintain the minimum cash balance end of each month of $20,000. ABC has the following projected cash flows for July 2021: Beginning balance $15,000 Expected cash disbursements $18,000 Expected cash receipts $15,000 How much cash ABC needs to borrow in order to keep the target cash balance of $20,000 end of July? Select one: O a. no need to borrow money from the bank O b. $12,000 O c. $8,000 O d. $17,000 Assume you think a boom and a recession are equally likely to happen, a 50-50 chance of either. State of Economy Probability of State of Economy Security Returns if State Occurs Security L Security U Recession 0.50 -20% 30% Boom 0.50 70% 10% Based on the above information, what is expected return on stock L? Select one: O a. 18% b. 22% O c. 25% O d. 20%