1. Queen B Corp. has a current annual cash dividend policy of $5.00. The price of the stock is set to yield 10% return. What is the price of this stock today if the dividend will be paid for 6 year and then a liquidating final dividend of $30.00? Show your answer to the nearest 2 decimals. Do not use the $ sign in your answer. For example, if the answer is $3.237 enter your answer as 3.24 Do not enter it as $3.237, $3.2, 3.2, or 3.237

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2. Given the following dividend pattern for the next 7 years,

Year 1 5.05

Year 2 5.30

Year 3 5.70

Year 4 6.06

Year 5 6.70

Year 6 7.08

Year 7 8.26

What is the (annual) geometric rate of growth?

7.28%

8.55%

10.34%

8.62%

3. The next dividend (Div1) is $2.00, the growth rate (g) is 2%, and the required rate of return (r) is 8%. What is the stock price today?

34.00

33.33

41,20

25.50

4. 4pass Inc. just paid an annual dividend of 1.12. The company follows a dividend policy that raises dividends annually at a rate of 4% (and expects this rate to go forever). The required rate of return is 13%. What is today's stock price?

1) 12.94

2) 12.44

3) 15.73

4) 8.62

5) 27.03

5. You want to invest in a stock that pays $5.00 annual cash dividends for the next five years. At the end of the five years, you will sell the stock for $20.00. If you want to earn 12% on this investment, what is a fair price for this stock if you buy it today?

1) 43.90

2) 40.00

3) 25.42

4) 27.90

6. Casa Depo corp. has preferred stock with a par value of $140.00 and an annual 8% cumulative dividend. If the required rate of return for the stock is 11%, what price, today, of casa depos prefered stock?