Using the discounted cash flow method, compute the cost of new common stock for HH:

options:

	14.3%
	17.3%
	16.7%
	10.3%

Part B If the required rate of return on a companys stock falls, the value of the companys stock should increase.

options:

	True
	False

Part C

XYZ stock is currently trading at $39.75 a share. The company is expected to pay a dividend of $1.65 per share and this dividend is expected to grow at a constant annual rate of 6% per year. The required rate of return on the stock is 10%. What is the expected return on this stock?

options:

	14.2%
	13.8%
	9.8%
	10.2%