tic risk? 15) Which of the following is/are examples of systema A) The risk that oil prices rise, increasing production B) The risk that the Federal Reserve raises interest rates C) The risk that the economy slows, reducing demand for your firm's products D) All of the above B) None of the above The next three problems refer to Roadrunner Enterprises Roadrunner Enterprises is expected to grow its dividends and earnings at various rates. The company just paid a $1.00 dividend. The company expects to grow its earnings and dividends at 13% for the next two years, and then the company expects to grow at 10% for the following three years after which th e company expects to grow at a constant rate of 7% per year indefinitely. The required rate of return on Roadrunner's common stock is 13%. 16. What is the present value of the nrst ive years dividends? A) Less than $3.00 B) $3.00 to $4.00 C) $4.00 to $4.50 D) $4.50 to $5.00 E) More than $5.00 17. What is the present value of the "residual"? (The "residual" is the FMV of the stock when the constant growth begins.) A) Less than $20.00 B) $20.00 to $25.00 C) $26.00 to $35.00 D) $38.00 to $500 E) More than $60.00 18. What is the Fair Market Value (PMV) of the atook nowt FMV is the PV of the nra, nve years' dividends and the PV of the A) Less than $25.00 B) $26.00 to $30.00 CHint: The ) $30.00 to $40.00 D) $40.00 to $60.00 E) Mare than $60.00