Question 6: Current forecasts are for ABC Company to pay annual cash dividends of $3.00, $0, and $6.50 per share over the next three years, respectively. At the end of three years, you expect to sell your share at a market price of $127. What should the price of a share today be with a 10% expected rate of return? (10 points) Question 7: Smith Inc. is considering an investment in one of two common stocks. Given the following information, which investment is better, based on the risk (as measured by the standard deviation) and return of each? (Please calculate the expected rate of return of each investment and its corresponding standard deviation). (20 points) Common Stock A: Probability Return 0.30 10% 0.40 15% 0.30 17% Common Stock B: Probability Return 0.20 - 2% 0.30 5% 0.30 11% 0.20 22%