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dicate the answer choice that best completes the statement or answers the question, questions are weighted equally. Clearly fill in the appropriate bubble on the

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dicate the answer choice that best completes the statement or answers the question, questions are weighted equally. Clearly fill in the appropriate bubble on the scuntran A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of Cum is = 10.5%, and the expected constant growth rate is g- 63%. What is the stock's rrent price? a. $22.32 b. $21.43 c. $14.46 d. 317.86 If D. = 52.25, (which is constant) = 3.5%, and Po - S42, then what is the stock's expected dividend vield for the coming year? a. 6,93% b. 5.21% c. 5.54% d. 5.82% a 3. Gray Manufacturing is expected to pay a dividend of S1.25 per share at the end of the year (D = $1.25). The stock sells for $24.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate, g? a. 6.53% b. 5.40% c. 4.32% d. 5.94% 4. Misra Inc. forecasts a free cash flow of $20 million in Year 3. i.c., att = 3, and it expects FCF to grow at a constant rate of 5.5% thereafter. If the weighted average cost of capital (WACC) is 10.0%, then what is the horizon, or continuing, value in millions at t= 3? FCF (1 +9) Hint: Horizon value (at t = 3) = WACC -9 a. $492 b. $441 c. $469 d. $506 See Next page

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