Tresnan Brothers is expected to pay a $2.70 dividend at the end of the year. Dividends will grow at a constant 4% per year. The required return on the stock is 10%. What is the stock's current price per share? a. $46.80 b. $49.50 c. $45.00 d. $43.27 You paid $20 for a share of common stock in the ABC Corporation at T=0. ABC just paid a $2.00 dividend. If dividends are declining at a constant 3% rate, what rate of return do you expect to earn? a. 10% b. 10.3% c. 13% d. 13.3% e. 9.7% f. 6.7% 10. Which of the following statements is FALSE? a. Common stock dividends do not lower a firm's taxable income and taxes owed. b. Preferred stockholders have a residual claim on both assets and income of the firm preferred stockholders are "last in line." c. You might find a "sinking fund" feature with a bond, but that feature would not be associated with common stock. d. A proxy allows you to give someone else the right to vote on important company decisions