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28. Canopus, Inc, is expected to pay a dividend of $1.40 next year ( i.e., D1=1.40) and its eurrent stock price is $21.20. The discount rate for the company is 10%. If the market expects Canopus's dividends to grow at a constant rate forever, then the growth rate must be % a. 4.00 b. 3,46 c. 3.80 d. 3.86 c. 3.40 29. Arcturus, Inc. just paid a dividend of $3.20 (i.e., D0=3.20 ). Areturus's dividends will grow at 25% next year and then 30% for the two years after that. After that, the dividend will grow at 4% forever. Assuming a 11% cost of equity, the current stock price should be $ a. 90.15 b. 85.02 c. 87.39 d. 91.59 e. 86.20 30. If Martini observes that the risk-free rate (Rt) is 2% and the market return (Rm) is 9% then, according to the Capital Asset Pricing Model (CAPM), he knows that for a stock with a beta of 1.2 , the required rate of return will be % a. 10.4 b. 11.8 c. 12.4 d. 12.0 e. 13.6