1

RAM Co just paid a dividend of $3.00, and expects an annual dividend growth rate of 3% indefinitely.What is the expected dividend a year from now?

10 points

QUESTION 2

JAM Co just paid a dividend of $5.00, and expects an annual dividend growth rate of 5% indefinitely.What is the expected dividend a year from now?

10 points

QUESTION 3

ABC Co just paid a dividend of $2.00, and expects an annual dividend growth rate of 4% indefinitely.What is the expected dividend a year from now?

10 points

QUESTION 4

XYZ Co just paid a dividend of $3.00, and expects an annual dividend growth rate of 5% indefinitely.What is the expected dividend a year from now?

10 points

QUESTION 5

ABC Co has a dividend payout ratio of 20% (which means it has a retention ratio of 80%) If Return on Earnings is 5%,what is the expected growth rate for dividends?

10 points

QUESTION 6

RAM Co has a dividend payout ratio of 25% (which means it has a retention ratio of 75%) If Return on Earnings is 8%, what is the expected growth rate for dividends?

10 points

QUESTION 7

Patriot, Inc. has just paid a $2.00 annual dividend on its common stock.The dividend is expected to grow at a constant rate of 6% per year indefinitely.Based on market risk conditions and Patriot's beta value, the required rate of return on Patriot's stock is 13%.Calculate the current value of Patriot's stock.

10 points

QUESTION 8

Perry, Inc. has just paid a $1.00 annual dividend on its common stock.The dividend is expected to grow at a constant rate of 2% per year indefinitely.Based on market risk conditions and Perry's beta value, the required rate of return on Patriot's stock is 16%.Calculate the current value of Perry's stock.

10 points

QUESTION 9

Tango, Inc. has just paid a $3.50 annual dividend on its common stock.The dividend is expected to grow at a constant rate of 6% per year indefinitely.Based on market risk conditions and Tango's beta value, the required rate of return on Patriot's stock is 12%.Calculate the current value of Tango's stock.

10 points

QUESTION 10

Foxtrot, Inc. has just paid a $3.00 annual dividend on its common stock.The dividend is expected to grow at a constant rate of 5% per year indefinitely.Based on market risk conditions and Foxtrot's beta value, the required rate of return on Patriot's stock is 10%.Calculate the current value of Foxtrot's stock.