1. Over the past 6 years, a local firm has paid annual dividends of $1.92, $2.17, $2.33, $2.50, $2.76, and $3.04. What is the geometric average dividend growth rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

2. Standard, Inc. reported EBIT of $48.00 million for last year. Depreciation expense totaled $20 million and capital expenditures came to $7 million. The company increased net working capital by $2 million. Free cash flow is expected to grow at a rate of 5.70% for the foreseeable future. Standard faces a 40% tax rate and has a 0.40 debt to equity ratio with $200 million (market value) in debt outstanding. Standard's equity beta is 1.24, the risk-free rate is currently 5% and the market risk premium is estimated to be 6%.

What is the current value (in millions) of Standard's equity?

3. A certain stock has a beta of 1.4. If the risk-free rate of return is 3 percent and the market risk premium is 5.5 percent, what is the expected return of the stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

4. Over the past 6 years, a local firm has paid annual dividends of $2.13, $2.23, $2.36, $2.75, $3.07, and $3.28. What is the arithmetic average dividend growth rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

5. Joker stock has a sustainable growth rate of 6 percent, ROE of 11 percent, and dividends per share of $2.03. If the P/E ratio is 20.5, what is the value of a share of stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

6. Wilson's Furniture is experiencing good growth so has decided to commence paying dividends starting next year. The first dividend will be $1.99 a share with annual increases of 5 percent in the dividend amount. The discount rate is 10 percent. What will the value of this stock be five years from now? (do not round up intermediate calculation; round up final answer to two decimal places)

7. JJ Industries will pay a regular dividend of $1.60 per share for each of the next four years. At the end of the four years, the company will also pay out a liquidating dividend of $42 per share, and the company will cease operations. If the discount rate is 13 percent, what is the current value of the companys stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

8. johnson Products earned $5.09 per share last year and paid a dividend of $2.5 per share. If ROE was 14 percent, what is the sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

9. Bills Bakery expects earnings per share of $2.1 next year. Current book value is $3.80 per share. The appropriate discount rate for Bills Bakery is 12 percent. Calculate the share price for Bills Bakery if earnings grow at 2.5 percent forever. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

10. Blue Water Tours just paid an annual dividend of $5.3 a share. The firm has a policy of increasing the dividend by 4 percent annually. What is the current value of this stock at a discount rate of 12.7 percent? (round up your answer to two decimal places)