Suppose a stock paid a dividend of $2.00 per share yesterday, has expected growth of 3% for the next two years and 5% growth after that, and has a required rate of return of 9%. What is the expected stock price today?

Question 59 options:

	$50.56
	$46.68
	$49.66
	$45.87

Question 60 (3 points)

Suppose a firm has a debt to equity ratio of 0.6 and has a tax rate of 20%. How much bigger will the firm's leveraged beta be compared to its unleveraged beta?

Question 60 options:

	The leveraged beta will be 1.88 times the unleveraged beta.
	The leveraged beta will be 1.48 times the unleveraged beta.
	The leveraged beta will be 1.36 times the unleveraged beta.
	The leveraged beta will be 2.12 times the unleveraged beta.