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The expected dividend payment for a common stock is $2.00. The risk-free rate is 5% and the market risk premium is 10%. The stock has

The expected dividend payment for a common stock is $2.00. The risk-free rate is 5% and the market risk premium is 10%. The stock has a beta of 2.

What is the stock's required rate of return?

A. 17.5%

B. 25.0%

C. 15.0%

D. 10.0%

What is the stock's current price if dividends are expected to decrease at 5% per year?

A. $16.00

B. $9.67

C. $ 6.67

D. $10.00

E. $8.00

What is the stock's current price if dividends are expected to increase at 5% per year?

A. $15.00

B. $18.00

C. $10.00

D. $21.29

E. $11.71

What is the stock's current price if dividends are expected to stay unchanged?

A. $16.00

B. $8.00

C. $10.29

D. $12.50

E. $0.71

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