QUESTION 6 If DO = $2.30. g (which is constant) = 5%, and PO = $45, what is the stock's expected total return for the coming year? O A. 5.00% OB. 10.37% O C. 10.11% OD. 10.65% QUESTION 7 McDonnell Manufacturing is expected to pay a dividend of $1.20 per share at the end of the year (D1 = $1.20). The stock sells for $33.00 per share, and its required rate of return is 14.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate? O A. 14.50% OB. 11.22% O C. 10.86% OD. 10.36% QUESTION 8 Ewert Enterprises stock currently sells for $35.00 per share. The stock's dividend is projected to increase at a constant rate of 7.00% per year. The required rate of return on the stock, rs, is 15.00%. What is Ewert's expected price 3 years from today? O A. 45.88 OB. 37.45 O C.40.07 OD. 42.88 QUESTION 9 Gary Wells Inc. plans to issue perpetual preferred stock with an annual dividend of $8.00 per share. If the required return on this preferred stock is 7.0%, at what price should the stock sell? O A. 106.50 O B. 70.00 O C. 110.86 OD. 114.29 QUESTION 10 The Zumwalt Company is expected to pay a dividend of $1.60 per share at the end of the year, and that dividend is expected to grow at a constant rate of 10.90% per year in the future. The company's beta is 1.40, the market risk premium is 8.50%, and the risk-free rate is 1.00%. What is the company's current stock price? O A. 80.00 OB. 82.40 O C.76.00 OD. 78.50 QUESTION 11 The Isberg Company just paid a dividend of $1.00 per share, and that dividend is expected to grow at a constant rate of 14.40% per year in the future. The company's beta is 1.60, the market risk premium is 9.00%, and the risk-free rate is 2.50%. What is the company's current stock price? O A. 43.65 OB. 40.00 O C.52.35 OD. 45.76