32.Beazley Corporation would like to raise $100,000,000 by issuing preferred stock.The preferred stock will have a par value of $1,000 per share and pay a dividend of $72 per year. If the required rate of return for this stock is 16 percent,how many shares of preferred stock must Beazley issue? (a)450 (b)16,000 (c)222,222 (d)265,332 Answer:(c) 33.If you use the constant dividend growth model to value a stock,which of the following is certain to cause you to increase your estimate of the current value of the stock? (a)Decreasing the required rate ofreturn for the stock (b)Decreasing the estimate of the amount of next year's dividend (c)Decreasing the expected dividend growth rate (d)All of the above Answer:(a) 34.The constant dividend growth model may be used to find the price of a stock in all of the following situations except when: (a)g<k (b)k<g (c)g=0 (d)k≠g Answer:(b) 35.CarsonCorp just paid an annual dividend of $3.00.Dividends are expected to grow at a constant rate forever.The price of the stock is currently $63.00.The required rate of return for this stock is 15 percent.What is the expected growth rate of CarsonCorp's dividend? (a)5.00% (b)5.48% (c)6.33% (d)10.00% Answer:(a) 9-99-9 32. Beazley Corporation would like to raise $100,000,000 by issuing preferred stock. The preferred stock will have a par value of $1,000 per share and pay a dividend of $72 per year. If the required rate of return for this stock is 16 percent, how many shares of preferred stock must Beazley issue? (a) 450 (b) 16,000 (c) 222,222 (d) 265,332 Answer: (c) 33. If you use the constant dividend growth model to value a stock, which of the following is certain to cause you to increase your estimate of the current value of the stock? (a) Decreasing the required rate of return for the stock (b) Decreasing the estimate of the amount of next year’s dividend (c) Decreasing the expected dividend growth rate (d) All of the above Answer: (a) 34. The constant dividend growth model may be used to find the price of a stock in all of the following situations except when: (a) g < k (b) k < g (c) g = 0 (d) k ≠ g Answer: (b) 35. CarsonCorp just paid an annual dividend of $3.00. Dividends are expected to grow at a constant rate forever. The price of the stock is currently $63.00. The required rate of return for this stock is 15 percent. What is the expected growth rate of CarsonCorp’s dividend? (a) 5.00% (b) 5.48% (c) 6.33% (d) 10.00% Answer: (a)