Choose the correct answer

6.The common stock of a firm sells for $43.19 a share. The stock is expected to pay $2.28 per share next year (growth already included) when the annual dividend is distributed. The firm has established a pattern of increasing its dividends by 2.15% annually and expects to continue doing so. What is the market required rate of return on this stock?

7.59%

7.28%

7.14%

7.43%

7, A firm's currentmarket value is $1,640,000,000 and its annual free cash flow is $75,000,000.Using a required rate of return of 7.8%, compute the market's expected free cash flow growth rate.

A.3.23%

B.7.80%

C.12.37%

D.4.57%

8.A company paid a dividend of $1.85 per share in 2017.The firm is expected to increase its dividend in 2018 by 3%.If you paid $33.60 per share for the stock in 2010, what is your dividend yield for 2018?

A.5.67%

B.5%

C.5.34%

D.5.51%