just paid an annual dividend of $2.20 per share. Dividends are expected to increase by 3.75% annually, what is one share of its stock worth to you today if your required rate of return is 15%? a. $19.06 b. $19.30 c. $19.56 d. $20.29 e. $20.59 The common stock of Auto Deliveries sells for $28.16 a share. The stock is expected to pay $1.35 per share annual dividend next year. The firm has established a pattern of increasing its dividends by 3% annually and you expect this to continue. What is the implied discount rate for this stock expected 8. by the market? b. c. d. e. 7.42% 7.79% 19.67% 20.14% 20.86% 9. You believe Walthers' sustainable perpetual growth rate is 5% and it can sustain a 15% ROE in the future. How much of its earnings can Walthe rs afford to payout in order to maintain its growth rate? a, 0% b. 33.33% c. 50% d. 66.67% e. 100% 10. Renew It, Inc. is preparing to pay its first dividend. It is going to pay $0.45, $0.60, and $1 a share over the next three years, respectively. After that the company has stated that the annual dividend will be $1.25 per share indefinitely. What is one share of this stock worth to you if you demand a 10.8% rate of return? a. $6.67 b. $8.21 c. $10.14 d. $11.47 e. $12.03 11. What is the net present value (NPV) of a project that has an initial cash outflow of $34,900 and the following cash inflows? The required return is 15.35%. Year Cash $12,500 19,700 10,400