1) Anderson Motors, Inc. Has just set the company dividend policy at $0.30 per year. The company plans to be in business forever. What is the price of this stock if

a)an investor wants a return of 4%?

b) an investor wants a return of 8%?

c) an investor wants a return of 9%?

d)an investor wants a return of 13%?

e) an investor wants a return of 18%?

2) Dietterich Electronics wants its shareholders to earn a return of 8% on their investment in the company. At what price would the stock need to be priced today if Dietterich Electronics had a

a) $0.40 constant annual dividend forever?

b) $1.00 constant annual dividend forever?

c)$1.80 constant annual dividend forever?

d)$3.30 constant annual dividend forever?

3) Singing FIsh Fine Foods has a current annual cash dividend policy of $2.50. The price of the stock is set to yield a return of 14%. What is the price of this stock if the dividend will be paid

a) for 12 years?

b) for 15 years?

c) for 40 years?

d) for 60 years?

e) for 100 years?

f) forever?