please select all of the correct answers for a thumbs up, thanks:)

1. XYZ Inc. has US$6,000 after taxes to distribute as dividend or reinvest in the company. If it decides to pay dividend, you will have to pay tax at the rate of 25% per annum. You can invest your post-tax receipts at the rate of 7% per annum. If XYZ decides to reinvest the money in the firm, the money can still grow at a rate of 5% per annum. The corporate tax rate is 40% per annum. What is the capital gain if the dividend was paid out and reinvested?

Select one:

a. $135.00

b. $315.00

c. $245.50

d. $187.50

2. A company has an EPS of US$12 per share. It pays out its entire earnings as dividend. It has a growth rate of zero and a required return on equity of 8 percent per annum. Assuming all cashflows are perpetuities, what will be the price of the companys stock?

Select one:

a. USD83.43

b. USD155.00

c. USD85.00

d. USD150.00

3. Which of the following independent questions is false?

Select one:

a. Interest rate parity holds that investors should expect to earn the same return in all countries after adjustment for risk.

b. The covered interest parity and the purchasing power parity help establish the International Fisher Effect.

c. If a country wants to boost its exports, it should devalue its currency

d. Long-run fluctuations from unanticipated changes in relative economic conditions between countries is referred to as operating exposure