QUESTION 32 In the Constant Growth Model, the total return on a share of common stock is comprised of a O A capital gains yield and a dividend growth rate OB. capital gains growth rate and a dividend growth rate C. dividend payout ratio and a required rate of return D. dividend yield and a capital gains yield QUESTION 33 A common stock sells for $44.96 a share and has a rate of return of 12.8%. The company just paid an annual dividend of $1.04 per share. What is the dividend growth rate? A. 8.45% B. 9.23% O C. 10.25% OD. 9.679 E. 8.29% QUESTION 34 Goode Inc.'s stock has a required rate of return of 11.50%, and it sells for $25.00 per share. Goode's dividend is expected to grow a constant rate of was the last dividend, DO? O A $0.95 B. $1.05 C. $1.16 D. $1.27 E. 51.40 San Antonio save allons QUESTION 35 Which of the following would be considered a capital budgeting decision? O A Planning to issue common stock rather than issuing preferred stock O B. A decision to expand into a new line of products, at a cost of $5 million O C. Repurchasing shares of common stock O D. Issuing debt in the form of long-term bonds QUESTION 36 Anderson Systems is considering a project that has the following cash flows. What is the project's NPV? The discount rate is 9 Year 0 1 2 3 Cash flows -$1,000 $500 $500 $500 CA $265.65 O B. $278.93 O. C. $292.88 O D. $307.52 E. $322.90 ALLECTION 37 QUESTION 37 A project will cost $160,000. The after-tax future cash flows are expected to be 540,000 annually for 7 years. Assume the required retums 1 W project's IRR? Accept? O A. 12.2%; yes O B.12.2%; no OC. 16.3%; yes O D. 16.3%; no E. 17.0%, indifferent QUESTION 38 Suppose Firm Bhas its target capital structure as follows. Firm Bhas a tax rate of 40%. What's the WACC (Weighted Average cost of Capitale Instrument Market Value (Smil.) Cost of capital Debt 30 7% 10 10% Preferred Stock 40 14% Common Equity CA. 8.70% OB, 9.839 O c.7.86% OD 10.33% O E. 10.88% aane all answers