If a firm uses short term funding in its capital structure, then the WACC would have a separate component $($a fourth weighted measure$).$

True

False

QUESTION $27$

A stock just paid a $$3\mathrm{.}05$ dividend, expected to grow at $5\%$ for years $1$ and $2,$ and then at $1\mathrm{.}5\%$ thereafter. What is the stock's intrinsic value if the investor requires a $9\%$ return?

$$44\mathrm{.}07$

$$52\mathrm{.}03$

$$48\mathrm{.}98$

$$64\mathrm{.}16$

none of these

QUESTION $28$

A preferred stock pays a $$6\mathrm{.}05$ dividend per share every year. If investors require a $7\mathrm{.}6\%$ return on this preferred stock, what is the preferred stock's intrinsic value?

$$58\mathrm{.}97$

$$69\mathrm{.}95$

$$79\mathrm{.}61$

$$84\mathrm{.}52$

none of these