You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for one year. You expect to receive both $0.70 in dividends and $40 from the sale of the share at the end of the year. The maximum price you would pay for a share today is __________ if you wanted to earn a 9.5% return.

A) $37.17

B) $37.28

C) $37.35

D) $37.42

Gagliardi Way Corporation has an expected ROE of 21%. Its dividend growth rate will be __________ if it follows a policy of paying 20% of earning in the form of dividends.

A) 3%

B) 5%

C) 8%

D) 0%

Rose Hill Trading Company is expected to have EPS in the upcoming year of $6.50. The expected ROE is 25%. An appropriate required return on the stock is 11%. If the firm has a plowback ratio of 80%, its dividend in the upcoming year should be __________.

A) $1.15

B) $1.20

C) $1.25

D) $1.30

Cache Creek Manufacturing Company is expected to pay a dividend of $2.45 in the upcoming year. Dividends are expected to grow at 7% per year. The stock's current price is $65.00. Using the constant growth DDM (and for simplicity, assume the intrinsic value of the stock is equal to its current price), the market capitalization rate (or cost of equity) is __________.

A) 5%

B) 8%

C) 0%

D) 1%

Todd Mountain development Corporation is expected to pay a dividend of $1.80 in the upcoming year. Dividends are expected to grow at the rate of 7.5% per year. The risk-free rate of return is 0.3% and the expected return on the market portfolio is 10.5%. The stock of Todd Mountain Development Corporation has a beta of 0.95. Using the CAPM, the return you should require on the stock is __________.

A) 75%

B) 86%

C) 99%

D) 05%