1. What is the estimated value of a stock, which paid a $10 dividend D0 last year, expects dividends to grow at 5%, and requires a 20% return?
A. $66.67 B. $70.00 C. $73.50 D. $80.00.
2. UPS has a beta of 0.8. What is the firms cost of equity is the firms marginal tax rate is 35%, risk free rate is 3%, and the market risk premium is 9%?
A) 10.20%
B) 6.63%
C) 9.49%
D) 10.51%
E) 7.80%