Its earnings this year will be $2 per share. Investors expect a 12% return on the stock. What's the present value of the growth opportunities? (Hw3) A) 0 B) 6.66 C) 2 D) none of the above esees 5. The dividend forecasts for Motorola for the next four years are: 0.17,0.183,0.197 and 0.21, and the expected growth rate for Motorola afterwards is 12.74%. The required rate of return for Motorola is 13.8%, what should be the target price for Motorola in four years? (L13, slide 10) B) 15 C) 20 D) none of the above If the target price for Motorola in four years is $22.34.Given the dividend and required rate of return information in question 5, how much are you willing to pay for its stock today? (L13, slide 10) A) 10 B) 13.8 C) 22.34 D) none of the above 6. The capital allocation line is also the A) investment opportunity set formed with a risky asset and a risk-free asset B) investment opportunity set formed with two risky assets C) line on which lie all portfolios that offer the same utility to a particular 7. investor D) line on which lie all portfolios with the same expected rate of return and different standard deviations An investor invests 40% of his wealth in a risky asset with an expected rate of return of 15% and a variance of 0.04 and 60% in a treasury bill that pays 6%. Her portfolio's expected rate of return and standard deviation are 8. and respectively. ) 8.0%, 12% B) 9.6%, 8% C) 9.6%, 10% D) 11.4%, 12% E7e)-15% 6%, 80% Consider the following two investment alternatives. First, a risky portfolio that pays 15% rate of return with a probability of 60% or 5% with a probability of 40%. Second, a treasury bill that pays 6%. I enskpremium onthe risky investment is A) 1% WA B) 5% 9