QUESTION 6 Gray Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D 1 - $1.25). The stock sells for $22.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate? a. 4.90% Ob. 4.25% c. 4.94% d.5.88% e. 4.30% QUESTION 7 A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if investors' required rate of return is 10.2%, then what is the stock price? a. $21.96 b. $24.37 c. $23.93 d. $16.47 e. $23.50