Assume that the risk-free rate, r RF, increases but the market risk premium, (r M-r RF), declines with the net effect being that the overall required return on the market. I remains constant Which of the following statement is CORRECT? O a. The required return of all stocks will increase by the amount of the increase in the risk-free rate. O b. The required return of all stocks will fall by the amount of the decline in the market risk premium. c. The required return will increase for stocks that have a beta less than 1.0 but decline for stocks that have a beta greater than 1.0. O d. The required return will decline for stocks that have a beta less than 1.0 but will increase for stocks that have a beta greater than 1.0. O e. Since the overall return on the market stays constant, the required return on each individual stock will also remain constant. EXPIRED; ACTIO a a Your antivirus trial ha reactivate protection. A Moving to the next question prevents changes to this answer. On 12/31/15, Hite Industries reported retained earnings of $510,000 on its balance sheet, and it reported that it had $142,000 of net income during the year. On its previous balance sheet, at 12/31/14, the company had reported $445,000 of retained earnings. No shares were repurchased during 2015. How much in dividends did the firm pay during 2015? O a. $55,300 O b.$70,000 O c. $53,200 O d. $77,000 O e. $60,900 Question 14 of 63 Moving to the next question prevents changes to this answer. 8 points Gupta Corporation is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. However, the FCF is expected to be $85.00 million in Year 5, and the FCF growth rate is expected to be a constant 70% beyond that pourt. The weighted average cost of capital is 12.0%. What is the horizon (or continuing) value (in millions) at t= 5? O a. $1,819 Samed O b.$1,234 O c. $1,432 O d.$1,662 e. $1,646 A Moving to the next question prevents changes to this