Question 6 2. The Down and Out Co. just paid a dividend of $2.51 per share on its common stock. The company is expected to maintain a constant 5 percent growth rate in its annual dividends indefinitely. If the stock is currently selling for $55 a share, what is the required rate of return on the company's stock? 9.79% 9.06% 6.88% 8.32% 10.28% Previous Lake City Plastics currently produces plastic plates and silverware. The company is considering expanding its product offerings to include plastic serving trays. Which of the following are cash flows relevant to the new product? 1. Purchase of the equipment needed to produce the serving trays II. Projected increase in plate and silverware sales if the trays are produced III. Consulting fees already paid to Corporate Doctor & Associate IV. Raw materials to be used in the production of the serving trays III and IV only I, III, and IV only I, II, and IV only I, II, III, and IV I and IV only