How much should you pay for a share of stock that offers a constant growth rate of 10%, requires a 16% rate of return, and is expected to sell for $52.48 one year from now? Which of the following statements is most correct? Since debt financing raises the firm's financial risk, raising a company's debt ratio will always increase the company's WACC. Since debt financing is cheaper than equity financing, raising a company's debt ratio will always reduce the company's WACC. Increasing a company's debt ratio will typically reduce the marginal cost of both debt and equity financing; however, it still may raise the company's WACC Statements a and c are correct. None of the statements above is correct. Tommy wishes to determine the return on two stocks she owned in 2019. At the beginning of the year, stock X traded for $89 per share. During the year, X paid dividends of $1 At the end of the year, Xstock was worth $67 Calculate the annual rate of return, r, for X (Enter the answer in \% format without \% sign 20.51 and not 20.51% or 0.2051 )