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Waters Corporation's stock dividend is expected to be $2 a share (D1 = $2.00). The stock's required rate of return is 15% and the stock's

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Waters Corporation's stock dividend is expected to be $2 a share (D1 = $2.00). The stock's required rate of return is 15% and the stock's dividend is expected to grow at the same constant rate of 5% forever. What is the expected price of the stock five years from now? A) $25.53 B) $28.45 C) $30.82 w D) $23.26 Question 2 (1 point) The real risk-free rate of interest is 2.5%. Inflation is expected to be 3% this year and 3.5% during the next three years. Assume that the maturity risk premium is zero. What is the yield on 4-year Treasury securities? A) 9.00% B) 8.50% C) 6.50% Windows D) 5.88% KUULUHI MIL Which of the following items is included as part of a company's current liabilities? O A) Accounts payable. B) Inventory. C) Accounts receivable. D) All of the above. Quc LIUI IPUIRIL Assume that you wish to purchase a 20-year, semiannual bond with a coupon rate of 8% and a par value of $1,000. If you require a 10 percent nominal yield to maturity on the bond, what should be the bond price? A) $619.80 B) $674.50 C) $828.41 D) $761.78 Scranton Shipyards has $10 million of sales and $6 million of operating costs including depreciation. The company has $20 million of investor- supplied operating capital that has a cost of capital of 10%. What is the firm's Economic Value Added (EVA) given the company's overall tax rate of 40%? A) $441,000 B) $420,000 C) $400,000 D) $463,050

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