Canopus, Inc. is expected to pay a dividend of $$1\mathrm{.}40$ next year $($i$.$e$.,D_1=1\mathrm{.}40)$ and its current stock price is $$21\mathrm{.}20.$ The discount rate for the company is $10\%.$ If the market expects Canopus's dividends to grow at a constant rate forever, then the growth rate must be

a$.4\mathrm{.}00$

b$.3\mathrm{.}46$

c$.3\mathrm{.}80$

d$.3\mathrm{.}86$

c$.3\mathrm{.}40$

Arcturus, Inc. just paid a dividend of $$3\mathrm{.}20($i$.$e$.,D_0=3\mathrm{.}20).$ Arcturus's dividends will grow at $25\%$ next year and then $30\%$ for the two years after that. After that, the dividend will grow at $4\%$ forever. Assuming a $11\%$ cost of equity, the current stock price should be $

a$.90\mathrm{.}15$

b$.85\mathrm{.}02$

c$.87\mathrm{.}39$

d$.91\mathrm{.}59$

e$.86\mathrm{.}20$

If Martini observes that the risk$-$free rate $(R_f)$ is $2\%$ and the market return $(R_m)$ is $9\%$ then, according to the Capital Asset Pricing Model $($CAPM$),$ he knows that for a stock with a beta of $1\mathrm{.}2,$ the required rate of return will be $\%$

a$.10\mathrm{.}4$

b$.11\mathrm{.}8$

c$.12\mathrm{.}4$

d$.12\mathrm{.}0$

e$.13\mathrm{.}6$