Use a risk-free rate of 4% and market risk premium of 7% for the next 4 questions: Your firm's stock has a beta of 1.3 and is expected to pay a dividend of $2.50 that you expect to grow at 4%. According to your assumptions, what should be the current price of your stock? a. 28.57 b. 66.67 c. 27.47 d. 64.10 Your firm's stock has a beta of 1.3 and just paid a dividend of $1.50. If the current price of the stock is $25.75 per share, what growth rate does the market expect for your stock? a. 6.82% b. 1.96% c. 6.87% d. 2.07% Your firm's stock is currently priced at $42 per share and just paid a dividend of $2.50 that is expected to grow at 7%. You are considering a new project that will cause your beta to increase to 2.0 and your growth rate to increase to 9%. Should the new project be done? a. yes b. no c. not enough information to answer For the question above, what is the lowest new growth rate you could have with the project that would make the project a good idea, given that the beta increases to 2.0 with the project? a. 3.8% b. 8.3% c. 9.4% d. 11.4%