Question: please answer all 1 points Today. Aland Alia each have $150.000 in an investment account. No other contributions will be made to their investment accounts,


1 points Today. Aland Alia each have $150.000 in an investment account. No other contributions will be made to their investment accounts, Both have the same goat They each want their account to reach 51 million at which time each will retire. Al has his money invested in risk free securities with an expected annual return of 5 percent. Alia has her money invested in a stock fund with an expected annual return of 10 percent. How many years after Ala retires will retire? O a. 29.4 b. 19.9 OG 12,5 O d. 19.0 O. 38.9 1 points ABC Corporation is expanding rapidly, and it currently needs to retain all its earnings, hence it does not pay any dividends. However, investors expect ABC to begin paying dividends. with the first dividend of 50.75 coming two years from today. The dividend should grow rapidly, at a rate of 40 per year, during years 3 and 4. After year 4, the company should grow at a constant rate of 10 per year. If the required rate of return on the stock is 157, what is the value of the stock today? OS. 16.05 O b. 516.93 O c. $15.78 d. 517.54 Oe. 5 18.45 1 points Sve As Your mother-in-law, a stockbroker at invest Inc. is trying to sell you a stock with a current market price of $25. The stocks last dividend (D) was 52.00, and earnings and dividends are expected to increase at a constant growth rate of 16 percent. Your required rate of return on this stock is 20 percent. From a strict Valuation point of view, you should O a Buy the stock it is underpriced by 53.00 b. Buy the stock it is underpriced by 52.00 Oc. Buy the stock. It is fairly priced d. None of the above e. Not buy the stock it is overpriced by 53.00
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