The expected dividend is $2.50 for a share of stock priced at $25. What is the cost of equity if the long-term growth in dividends is projected to be 8%? 10.0% 8.0% 25.0% 18.0% You place half your wealth into TiVo stock and the other half into Intel bonds. TiVo stock's beta = 1.2 and Intel bonds' beta is 0.90. Calculate the portfolio beta. 0.90 1.00 1.05 1.10 1.20 Consider one of the two equations that can be used to calculate a firm's cost of equity: r_E= Divi/Po + g. If the expectcd growth rate of American Airlines' (AAL) common-stock dividends increases and if the price of AAL's stock also increases, what happens to AAL's cost of equity? It . Increases decreases remains unaffected might go up or down, depending on the relatives sizes of the two changes Which of the following has a beta of zero? a risk-free asset every asset has a beta greater than zero the market none of the above This problem is worth 8.0 pts., and is included in the Exam-#3 Breakdown. It is from Chapter 11. A project has the following data: Price/Unit=$45. Variable Cost/Unit=$36. Fixed costs=$20,000. Required retum-8%. Initial investment=$ 100,000. Life=4 yrs. Ignoring tax effects, what arc the following: acct break-even; cash break even; financial break/even. What's the degree of operating leverage at the financial break-even level of output