coroporate finance

5) The last dividend paid by France Expo Company was $2.6. France Expo growth rate is expected to be constant at 10 percent for 2 years, after which dividends are expected to grow at a rate of 6 percent forever. How much could be the best required rate of return for Clark's common stock to be sold for $45.56 ? O A) 12.5% O B) 11% C) 10.5% OD) 8% O E) None of the above 6. Consider the following information for the Foreign Investment Company (FIC). The company is holding the following 4 Investments. The risk-free rate is 5 percent and the market risk premium is 7.5 percent. If the manager sells half of her investment in X and puts the money in W, by how many percentage points will her portfolio's required return approximately change? Stock w Y Investment $750 $1,000 $525 $725 Beta 1.65 1 0.5 -0.75 Z OA) (1.07%) O B) 0.81% OC) (1.3125%) OD 11% O E) None of the above 7. Ravels Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 30% for the next 3 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e. g = 0. The company's last dividend, DO, was $2.75. its beta is 1.85, the market risk premium is 4.5%, and the risk-free rate is 3.675%. Then the current price of the common stock is nearest to? O A) $43.2 O B) $47.0 O C) $59.8 OD) $623 OE) None of the above Sa number of different common