Your friend promises you a perpetuity of $1 every year, which starts in year 1. However, your friend is an absent-minded guy. paying you $2 at year 12 but no payment at year 8. Except for these two years, in other years, the payment is always $1. Which of the following is right about the present value at year zero of your friend's all payments if r = 5%? Select one: a. $21.03 b. $19.66 O c. $20.03 O d. $20.34 e. None of the above Stock A pays a dividend of $3 per share every year. The discount rate is 10% and the return on equity is 25%. If you want to buy stock A now and hold it for one year, what is the price you have to pay now (PO) ? Select one: O a. $30.00 O b. $33.00 c. $36.00 O d. $42.00 O e. None of the above A stock paying $5 in annual dividends in year 1 (div1 = $5) also sells in year 1 for $115 (P1 =$115) and has an expected return of 20% in each year. What might investors expect to pay for the stock two years from now (P2)? Select one: O a. $132.25 O b. $133.00 O c. $130.25 O d. $115.00 O e. None of the above