The next two questions are based on this prompt: Weasel Works (WW) pays annual dividends. The first dividend will be paid in exactly 1 year. You expect Weasel Works first dividend to be $1 and you expect that after that the dividend will grow at a 3% annual rate forever. If r = 12% what is a share of WW worth? Question 1: Which of the Key Finance Equations is easiest to use to answer this question? Select one: O a. 2 O b.7 O c. 13 O d. 14 Basic 1. FV-PV(1 + r) 2. PV=FV +(1+r) 3. r=(FV - PV) --- 1 4. n-In (FV + PV) + In (1+r) Multiple Cash Flow 5. PV =(FV, +r)(1-(1 + (1 + r)")) 6. PV, = (FV, +r) 7. Only ifr>g: PVCGP - FVCP+ (r - g) 8. Ift=1: FVAL = rPV +(1-(1 + (1 + r)")) 9. Ift>1; p=r+t: FVx=pPV + (1 - (1 + (1 + p))) 10. EAR=(1+p) - 1 Solving for r [R] 11. Zero-coupon bond: use basic equation 3. 12. Coupon bond: Use an online bond yield calculator or a financial calculator. 13. Preferred stock: Solve equation 6 for r, yielding r=FV + PV =D,+P 14. Constant growth stock: Solve equation 7 for r, yielding r= (FV, + PV) +g=(D, P.) +g Bonus Equations: 15. E(R) = R + B. [E(R) - RJ 16. Degree of leverage = value of the asset + amount of equity 17. WACC - (CSW, R.) + (CSW..Ro [1 - tax rate])