same initial yeh APR paid D) a ten-year bond with a51000 fece value who e eoupor, este " srs APR- msim..sy 8) Jumbuack Exploration has a carent sock after it a dividend expected to sell foe $2.10 in one year's time, immediately or so.30. Which est ot sa Which of the following is cloest to Jumuck Exploration's equity cost of capita A)18% B)9% C)22% D,12% 9) Sunnyfax Publishing pays out all its earnings and has a share price of $37 50. In order to expand. Sunyfas Publbabe to cut its dividend from $3.00 to $2.00 per share and reinvest the retalied funds Once the funds are reinvesbe they are expected to grow at a rate of 12%. If the reinvestment does not affect Sunnyfax's eqaity cost of capialwh expected share price as a consequence of this decision? 9) A)$40.00 B) Se000 C)SS000 D)SS333 10) Sultan Services has 1.2 million shares outstanding, It expects earnings at the end of the year of $5.6 milion Sul pays out 60% of its earnings in total-40% paid out as dividends and 2rs used to repurchase shares. Sultan sea are expected to grow by 7% per year, hee payout rates do not change, and S lur segity eed a niky Sultan's share price? 10) A) $56.00 B)S140.00 C) $22.40 D) $93.33 11) A company has stock which costs $41.67 per share and pays a dividend of $2.50 per share this year. The com cost of equity is 8%.What is the expected annual growth rate of the company's dividends? 11)-- A)11% B)8% C)4% D) 2% 12) Which of the following models can be used to value a firm without explicitly forecasting that firms divid repurchases, or its use of debt? I. Dividend-discount model II. Total payout model III. Discounted free cash flow model 12) A) II and III B)lI onlyC)Ionly D) IIl only 13) Which of the following statements is FALSE regarding profitable and unprofitable growth? 13) A) Cutting the firm's dividend to increase investment will raise the stock price f, and only if, the new in positive net present value (NPV). B) If the firm retains more earnings, it will be able to pay out less of those earnings, which means that reduce its dividend. C) A firm can increase its growth rate by retaining more of its earnings. D) If a firm wants to increase its share price, it must cut its dividend and invest more. 14) Jumbo Transport, an air-cargo company, expects to have earnings per share of $2.50 in the comir