I 19. Thames Inc.'s most recent dividend was $21.40 per share (D - $2.40). The dividend is expected to grow at a constant rate of 6% per year. The risk- free rate is 5 and the market risk premium 1s 43. It the company's beta is 1.3, what is the price of the stock today? a. 572.14 b. $57.14 C. $40.00 d. $68.06 e. $60.57 20. An investor has $5,000 invested in a stock that has an estimated beta of 1.2, and another $15,000 invested in the stock of the company for which she works The risk-free rate is 65 and the market risk premium is also 68. The investor calculates that the required return on her portfolio is 158. What 19 the beta or the company for which she works? a. 1.6 b. 1.7 c. 1.8 d. 1.9 e. 2.0 21. The Ehrhardt Company's last dividend was $2.00. The dividend growth rate 15 expected to be 34 for 2 years, after which dividends are expected to grow at a rate of 88 forever. Erhardt's required return is 12. What is Erhardt's current stock price? a. 549.20 b. $51.40 C$53.80 d. $55.10 e $57.30 22 Motor Homes Inc. (MHI) is presently enjoying abnormally high growth because of a surge in the demand for motor homes. The company expects earnings and dividends to grow at a zate of 20% for the next 4 years after which there will be no growth - 03 in earnings and dividends Forever The company's last dividend, Dor was $1.50. MHIS beta 1 1.5, the market risk premium is 6, and the risk-free rate is 48. What is the current price of the common stock? a. 517.53 b. $19.63 C. $21.66 d. $23.57 525.87