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QUESTION 10 Non-constant dividend growth: RGV Cooling Company paid $3.00 per share in common stock dividends last year. The company's policy is to allow its

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QUESTION 10 Non-constant dividend growth: RGV Cooling Company paid $3.00 per share in common stock dividends last year. The company's policy is to allow its dividend to grow at 10 percent for 3 years and then the rate of growth changes to 4 percent per year from year four and on. What is the value of the stock if the required rate of return is 9 percent? 3.3 64.13 73.30 83.05 QUESTION 11 If you randomly select stocks and add them to your portfolio, which of the following statements best describes what you should expect? a. Adding more such stocks will reduce the portfolio's unsystematic, or diversifiable, risk. b. Adding more such stocks will have no effect on the portfolio's risk. Oc. Adding more such stocks will reduce the portfolio's market risk but not its unsystematic risk. Od. Adding more such stocks will reduce the portfolio's beta coefficient and thus its systematic risk. e. Adding more such stocks will increase the portfolio's expected rate of return

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