Question 17 (1 point) 17.You applied for an Equity Analyst position with Goldman Sachs after graduating from College of Charleston. As part of the evaluation process, you have to take a test on stock valuation covering the following questions: Vineyard Vines Company just paid a dividend to dividend of $4.5 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 10 % over the next year. However, after next year Vineyard Vine's dividend is expected to grow at a constant rate of 3.5 % per year. The risk-free rate is 4 % the market risk premium is 5.0 %, and Vineyard's beta is 1.15. What is the dividend two year from now, D2 a) 7.25 b) 5.34 c) 4.55 d) 5.12 el 6.54 Page 17 of 25 Nest Page Previous Page 18. You applied for an Equity Analyst position with Goldman Sachs after graduating from College of Charleston. As part of the evaluation process, you have to take a test on stock valuation covering the following questions: Vineyard Vines Company just paid a dividend to dividend of $4.5 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 10 % over the next year. However, after next year Vineyard Vine's dividend is expected to grow at a constant rate of 3.5% per year. The risk-free rate is 4 % , the market risk premium is 5.0 % , and Vineyard's beta is 1.15 Use the CAPM to compute the expected return? a) 9.75 % b) 4.0 % c) 6.5% d) 10.25% e) 8.5%