You own stock in Legacy, Inc. The annual risk free rate of interest is .0558. The annual expected return on the market is .1258. The beta for Legacy's stock is .4. You expect dividends to grow at a rate of 3.00% on an annual basis. Please round returns and growth rates to four places in your calculations.

1. The annual required return on the stock is:

Select one:

a. .0319

b. .0558

c. .0838

d. .1041

e. .1277

f. .1898

g. .2143

2. The quarterly required return on the stock is:

Select one:

a. .0079

b. .0137

c. .0203

d. .0251

e. .0350

f. .0444

g. .0497

3. The quarterly growth rate in dividends is:

Select one:

a. .0070

b. .0074

c. .0075

d. .0082

e. .0097

f. .0104

g. .0123