Slow Silver Scuba Corp Is Expected to Pay a Dividend

Multiple Choice

Slow Silver Scuba Corp is expected to pay a dividend of $8 in the upcoming year. Dividends are expected to decline at the rate of 2% per year. The risk-free rate of return is 6%, and the expected return on the market portfolio is 14%. The stock of Slow Silver Scuba Corp has a beta of −0.25. The return you should require on the stock is

A) 2%.
B) 4%.
C) 6%.
D) 8%.