1. Find the present value of a stock which will pay a dividend of $60 later today, with each subsequent annual dividend at a constant $50, given an annual interest rate of 15%.

Select one: a. $355 a. $355 b. $319 b. $319 c. $393 c. $393 d. $410 d. $410 e. $429

2.Suppose you are gifted a stock which would sell for $750 today, and pays its next dividend of $45 one year from today. If the current annual discount rate is 9%, what is the growth rate of these dividends?

Select one: a. 5% a. 5% b. 7% b. 7% c. 4% c. 4% d. 3% d. 3% e. 2%

3.Find the present value of a stock which will issue a $35 dividend one year from today, which will grow by 10% per year for the following 3 years and then fall to 4% growth per year for each year after that. Assume an effective annual interest rate of 12%.

Select one: a. $507 a. $507 b. $566 b. $566 c. $720 c. $720 d. $442 d. $442 e. $401

4.The Kepler Hospitality Group is in financial trouble: They will issue a $90 dividend later today, but they expect that dividends will fall by 4% per year for each year after. Find the present value of a share of this companys stock, given an annual discount rate of 12%.

Select one: a. $670 a. $670 b. $630 b. $630 c. $790 c. $790 d. $540 d. $540 e. $710