C-2 Name ) Coolibah Holdings is expected to pay dividends of $1.40 every six months for the next three years. If the current price of Coolibah stock is$22.20, and Coolibah's equity cost of capital is 18% APR. what price would you expect Coolibah's stock to sell for at the end of three years? D) 526.70 C) 532 04 A) $30.71 B) $29.37 Rylan Industries is expected to pay a dividend of $5.30 year for the next four years. If the current price 12) y an stock is S31 77, and Rylan's equity cost of capital is 12%, what price would you expect Rylan's stock to sell for at the end of the four years? A) 519.73 of R D) $69.05 $44.39 B) $24.66 13; You expect KT industries (KT) will have earnings per share ofs this year and expect that they will13 pay out si.25 of these earnings to shareholders in the form of a dividend. KTT's retun new investments is l 3% and their equity cost of capital is 14% The value of a share o closest to f KTTs stock today is A) $33.71 D) $40 45 B) $13.48 C) s20.23 14) JRN Enterprises just announced that it plans to cut its dividend from $2.00 to $1.00 per share the extra lunds to expand its operations. Prior to this announcement, JRN's dividends to grow indefinitely at 5% per year and JRN's stock was trading at S25.50 per expansion, JRN's dividends are expected to grow at 10% per year indefinitely Assuming that risk is unchanged by the expansion, the value or a share of IRN after the annesincement is were expected share. With the new JRN's A) $25.50 B) $12.75 C) $35.17 D) $70.35 15) Gremlin Industries will pay a dividend of $1.90 per share this year. It is expected that this dividend will grow by 5% per year each year in the future. The current price of Gremlin's stock i, S2370 per share. What is Gremlin's equity cost of capital? A) 17% B)1296 D) 13% c) 15% 16) A company has stock which costs $41.75 per share and pays a dividend of $2.40 per share this year The company's cost of equity is 7%, what is the expected annual growth rate of the company's dividends? A) 5.00% B) 1.25% C) 3.75% D) 2.50% 17 Two mutually exclusive investment Investment A pays $1.9 million per year in perpetuity, while investment B pays $1.3 million in the first year, with cash flows increasing by 5% per year after that. At what cost of capital would an investor regard both opportunities as being equivalent? A) 8% opportunities require an initial investment of56 million D) 17% B) 4% c) 16% 18) Chittenden Enterprises has 626 million shares outstanding. It expects earnings at the end of the year to 13) be S870 million. The firm's equity cost of capital is 8% Chittenden pays out 30% of its earnings in total 20% paid out as dividends and 10% used to repurchase shares If Chittenden's earrings are expected to grow at a constant 3% per year, what is Chittenden's share price? A) $2.50 D)$16.68 C) S4.17 B) $8.34 19: What is the internal rate of return (IRR) of an investment that requires an initial investment ofs 11,000 19 today and pays $15,180 in one year's time? A) 38% D) 42% C) 35% B) 41%