questions (12-15)

QUESTION 12 Alpaca stock is currently selling for $50.00. The expected dividend one year from now is $1.50 and the required return is 10%. What is this firm's dividend growth rate, assuming the constant dividend growth model is appropriate? A.7% 3.8% C.9% D. 10% QUESTION 13 Snuggle Blankets currently pays no dividends. The firm plans to begin paying dividends in 3 years. The first dividend will be $1.00 and dividends are expected to grow at 54 thereafter. Given a required return of 15%, what would you pay for the stock today? CA $ 7.18 8. $ 756 C$8.20 D. $10.00 E. $10.50 QUESTION 14 Dragon Enterprises just paid an annual dividend of $1,50. Dividends are expected to grow by 10% per year for the next three years, and then by 4% per year forever, if the required return is 12%, what should be the current stock price? A $20.40 B. $2177 C. $22.85 D. $23.94 E $25,50 QUESTION 15 What is the portfolio beta f 75% of your money is invested in the market portfolio, and the remainder is invested in a risk free asset? A 0.50 8.0.25 C 1.25 D. 1.00 E 0.75