7. If Do = $2.25, g (which is constant) = 3.5%, and Po = $42, then what is the stocks expected dividend vield for the coming year? a. 6.93% b. 5.21% c. 5.54% d. 5.82% 3. Gray Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (DI = $1.25). The stock sells for $24.50 per share, and its required rate of return is 10,5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate, g? a. 6.53% b. 5.40% c. 4.32% d. 5.94% 4. Misra Inc, forecasts a free cash flow of $20 million in Year 3, i.e., at t = 3, and it expects FCF to grow at a constant rate of 5.5% thereafter. If the weighted average cost of capital (WACC) is 32 10.0%, then what is the horizon, or continuing, value in millions at t= FCF3(1 + 9) Hint: Horizon value (at t = 3) = WACC - 9 a. $492 b. $441 c. $469 d. $506