Given the risk of XYZ Corp, common stock, your required rate of return is 16%. Given the current economic conditions and the current market price of the stock, you determine that the stock's expected return for the upcoming year is 14%. Which of the following is true? The stock is overpriced. The stock is underpriced. The stock is correctly priced. The stock price should rise. Both B and D are correct. Medical Supply Company has a beta of 1.55 and recently paid a common stock dividend of $3.47. If the return on Treasury securities is currently 7.5% and the return on the S&P 500 index is 12%, what is the required rate of return on the firm's common stock? 7.5% 26.1% 18.5% 12.93% 14.48% Dimensions Corporation's preferred stock recently paid its annual dividend of $6.75 per share. The par value of the preferred stock is $100. Investors require a 9% rate of return on this stock. What is the intrinsic value of the preferred stock? $1, 000 $75 $100 $1, 111 $833 Food Chain, Inc. common stock recently paid a dividend of $2.60. The firm typically pays out 50% of its earnings as dividends and retains the rest for investment in the firm. Food Chain has a return on equity of 15 percent. If investors require a return of 12 percent, what is the intrinsic value of the firm's common stock? Assume dividends will grow at a constant rate. $21.67 $23.29 $62.11 $24.92 $57.78