Q1 SRS, Inc just paid an annual dividend of $2 77 last month The required return is 14 8 percent and the dividend growth rate is expected to be constant at 3 5 percent What is the expected value of this stock ten years from now Q2 Given the following information about the returns of stocks A, B, and C, what is the expected return of a portfolio invested 30 in stock A, 40 in stock B, and 30 in stock C State of economy Probability Stock A Stock B Stock C Boom 0 15 0 24 0 31 0 23 Good 0 21 0 19 0 14 0 12 Poor 0 25 0 01 0 08 0 04 Bust 0 29 0 16 0 19 Enter answer in percents Q3 GIMP Inc , is trying to determine its cost of debt The firm has a debt issue outstanding with 2 years to maturity that is quoted at 109 9 percent of face value The issue makes annual payments and has an embedded cost (coupon rate) of 8 8 percent annually What is the firm's pretax cost of debt (Enter answer in percents )

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Q1/SRS, Inc. just paid an annual dividend of $2.77 last month. The required return is 14.8 percent and the dividend growth rate is expected to

Q1/SRS, Inc. just paid an annual dividend of $2.77 last month. The required return is 14.8 percent and the dividend growth rate is expected to be constant at 3.5 percent. What is the expected value of this stock ten years from now?

Q2/Given the following information about the returns of stocks A, B, and C, what is the expected return of a portfolio invested 30% in stock A, 40% in stock B, and 30% in stock C?

State of economy	Probability	Stock A	Stock B	Stock C
Boom	0.15	0.24	0.31	0.23
Good	0.21	0.19	0.14	0.12
Poor	0.25	0.01	0.08	0.04
Bust	--	-0.29	-0.16	-0.19

Enter answer in percents.

Q3/GIMP Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 2 years to maturity that is quoted at 109.9 percent of face value. The issue makes annual payments and has an embedded cost (coupon rate) of 8.8 percent annually. What is the firm's pretax cost of debt? (Enter answer in percents.)