1. The firm is expected to pay a dividend of D, = P1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 4.50% per year in the future. The firm's beta is...

Extracted text: 1. The firm is expected to pay a dividend of D, = P1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 4.50% per year in the future. The firm's beta is 1.25, the market risk premium is 6.50%, and the risk-free rate is 4.00%. What is the firm's current stock price? a. P17.13 d. P 19.23 b. Р16.39 е. Р31.90 с. Р32.68 f. P 20.10 2. The firm just paid a dividend of D, = P 0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% per year in the future. The firm's beta is 1.15, the required return on the market is 9.50%, and the risk-free rate is 4.50%. What is the firm's current stock price? a. P7.97 d. P 5.64 b. Р15.21 е. Р6.59 c. P16.79 f. P16.65