The stock in Up-Towne Movers is selling for $44.20 per share. Investors have a required return of 10.5 percent and expect the dividends to grow at 3.4 percent indefinitely. What was the dividend the company just paid?

$2.94

$3.04

$3.14

$2.75

$3.47

Which one of the following stocks is correctly priced if the risk-free rate of return is 4.2 percent and the market risk premium is 8.7 percent?

Stock	Beta			Expected Return
A		.83			7.89	%
B		1.58			12.71
C		1.40			16.38
D		1.39			12.02
E		.95			8.65

Stock C

Stock A

Stock B

Stock E

Stock D