Question 6 Which of the following is true for a constant growth stock? As the current dividend decreases the intrinsic value increases As the current dividend increases the intrinsic value decreases As the growth rate decreases the intrinsic value increases as long as the required rate of return is greater than the growth rate As the growth rate increases the intrinsic value increases as long as the required rate of retum is greater than the growth rale. Question 7 1 Macrotech is expanding rapidly and currently retains all of its earnings and does not pay a dividend. 4 years from today, Macrotech plans to bogin paying a dividend of $1 per share and then dividends will increase at a constant rate of 5% per year. If the required rate of return is 12% then what is the intrinsic value of Macrotech stock today? $14.29 $10.17 $8.33 O $15.00 D Question 8 1 pts KTS corporation has 54 million in debt and 2 million shares outstanding. Assume the present value of all future FCF is $10 million. What is the price per share of stock? O $3 O $5 $10 $2