Diamond Inc. has outstanding preferred shares that pays annual dividend of $6.00. Investors discount the preferred dividends at 9.00%. What is the current market price for Diamond s preferred shares? a. $55.57 b. $66.67 c. $77.77 d. $88.87 e. $99.97

Assume that the risk-free rate of return is 5.5% and the return from the New York Stock Exchange (NYSE) is 12%. What is the required rate of return of a stock with a beta of 2?

		a. 18.10%
		b. 18.20%
		c. 18.30%
		d. 18.40%
		e. 18.50%