E.7.79% 14A pre" l-with 2S%saandard deviataongametanodaretum of 19%last year-T-bills were peymg 43% This port otso had a Sharpe rato, of A 0.22 B 0.60 0.42 D. 0.25 0.75 IS. Each of two stocks, A and B, is expected to pay a dividend of $7 in the wpcoming year growth rate ofdividends is 6% for both stocks. You ropire a return of 10% on stock A mdafetarn of 12% on stock B. Using the constant-growth DDM, de intrinsic value of stock A- A. will be higher than the intrinsic value of stock B B. will be the same as the intrinsic value of stock B C. will be less than the intrinsic value of stock B D. The answer cannot be detemined from de information gi ven 16. A preferred share of Coquihalla Corporation will pay a dividend of S8 in the upcoming year and every year thereafter, that is, dividends are not expectedto grow. You require a return of 7% on this stock. Using the constant-growth DDM to calculate the intrinsic value, a preferred share of Coquihalla Corporation is worth A. S13,50 B. $45.50 C $9 D. $114.29 17. Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year Dividends are expected to grow at the rate of 12% during year 2, 20% during year 3 and 6% constant per year thereafter. The risk-free rate of return is 5%, and the expected return on the market portfolio is 17%, The stock ofTodd Mountain Development Corporation has a beta of .75. The intrinsic value ofthe stock is B. 37.65 C 35.50 D. 50 18. You are trying to determine the appropriate price to pay for a share of common stock purchase this stock, you plan to hold it for I year. At the end of the year you expect to r dividend of S5.50 and to sell the stock for S154The appropriate rate of return for this 16 percent. What should be the current price of this stock a. $137.50 b. $150.22 c. S162.18