The Katzenhaus: The Katzenhaus is expected to pay a dividend of $2.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 4.50% per year in the future. The company's beta is 0.56, the market return is 9.0%, and the risk-free rate is 3.25%. What is the required return on the stock, rs? [Hint: Kj=Krf + B(Km - Krf)] QUESTION 10 The Katzenhaus: What is the company's current stock price, Po ? YTM vs. YTC It is now January 1, 2020 and you are considering the purchase of an outstanding bond that was issued on January 1, 2017. It has a 7.25% annual coupon and had a 20-year original maturity. (It matures on December 31, 2036.) There is 5 years of call protection (until December 31, 2021), after which time it can be called at 107.5 - that is, at 107.5% of par, or $1,075. Interest rates have declined since it was issued, and it is now selling at 114.093% of par, or $1,140.93. What is the yield to maturity? QUESTION 12 YTM vs. YTC: What is the yield to call