1) Healthy Foods just paid its annual dividend of $1.45 a share. The firm recently announced that all future dividends will be increased by 3.10 percent annually. What is one share of this stock worth to you if you require a 15 percent rate of return?

Group of answer choices

a) 12.60

b) $13.87

c) $17.04

d) $13.75

e) $18.29

2) A corporate bond has a par value of $1,000, 18 years to maturity, coupon rate of 6.5% paid semiannually and sells for $1,040. What is the current yield of the bond?

Group of answer choices

a) 6.25 percent

b) 3.13 percent

c) 6.5 percent

d) 6.38 percent

3) Blueberry, Inc. current stock price is $74.35. The firm is expected to pay $3.78 dividends next year and the expected growth rate of 3% per year indefinitely. What is the required rate of return?

Group of answer choices

a) 5.08 percent

b) 3 percent

c) 8.08 percent

d) 5.24%