FIN305-Quiz Date: First Name: Last Name: Q1: Judy's Boutique just paid an annual dividend of $3.31 on its common stock. The firm increases its dividend by 3.75 percent annually. What is the company's cost of equity if the current stock price is $42.28 per share? Q2: Countess Corporation is expected to pay an annual dividend of $3.91 on its common stock in one year. The current stock price is $67.87 per share. The company announced that it will increase its dividend by 3.15 percent annually. What is the company's cost of equity? Q3: Countess Corporation is expected to pay an annual dividend of $5.23 on its common stock in one year. The current stock price is $79.31 per share. The company announced that it will increase its dividend by 3.45 percent annually. What is the company's cost of equity? Q4: Smathers Corporation stock has a beta of 1.22. The market risk premium is 7.10 percent and the risk-free rate is 2.90 percent annually. What is the company's cost of equity? Q5: Rossdale Company stock currently sells for $68.25 per share and has a beta of.85. The market risk premium is 7.10 percent and the risk-free rate is 2.85 percent annually. The company just paid a dividend of $3.45 per share, which it has pledged to increase at an annual rate of 3.10 percent indefinitely. What is your best estimate of the company's cost of equity? (1.5 pts)