1. Seven-Seas Co. has paid a dividend $3 per share out of earnings of $5 per share. If the book value per share is $40 and the market price is 52.50 per share calculate the required rate of return on the stock. a. 12%b. 11%c. 5%d. 6%2. River Co. has paid a dividend $2 per share out of earnings of $4 per share. If the book value per share is $25 and is currently selling for $40 per share calculate the required rate of return on the stock. a. 15.2%b. 7.2%c. 14.7%d. 13.4%3. Lake Co. has paid a dividend $3 per share out of earnings of $5 per share. If the book value per share is $40 what is the expected growth rate in dividends? a. 7.5%b. 8%c. 12.5%d. 5%4. The growth rate in dividends is a function of two ratios. They are: a. ROA and ROEb. Dividend yield and growth rate in dividendsc. ROE and the Retention Ratiod. Book value per share and EPS