Find the future dividend of D2. The annual dividend of Safari Incorporated in the coming year is expected to be D1 = $2.25 and management expects to maintain a dividend growth rate of g = 3% indefinitely. Investors require a return of R; = 10% on this type of stock. What is this stock's expected annual dividend in the following year of D2? $3.00 $2.32 $2.85 $3.05 $2.50 Find the intrinsic/theoretical price in one year of P1. The annual dividend of Safari Incorporated in the coming year is expected to be D1 = $2.25 and management expects to maintain a dividend growth rate of g = 3% indefinitely. Investors require a return of R; = 10% on this type of stock. What is this stock's expected price in one year or P1? $33.11 $32.65 $31.75 $29.89 $29.20 Understanding CAPM and its Security Market Line. If the risk- free rate of RF =6%, the return on the market of Rm = 11%, and Beta for Stock; = 2.0, what is the expected return of E(R ;) if investors express an increase in risk aversion that would cause Rm to increase by 4 percentage points, while Rf remains unchanged? (Hint: This happened after the 2008 global economic weakening. Very many investors lost so much money they were reluctant to re-invest in stocks. Eventually, stocks rebounded, but many investors missed the rebound opportunities because their level of risk aversion was so high.) 28.8% 24.0% 30% 18.7% 10.7%