1.

Suppose Nabisco Corporation just issued a dividend of $1.59 per share yesterday. Subsequent dividends will grow at a constant rate of 7.65% indefinitely. If the required rate of return for this stock is 17.26% , what is the value of a share of common stock today?

2.

What is the value of a share of preferred stock that promises to pay $1.00 every year,indefinitely, if you have a required rate of return of 7.73% ?

3.

The current price of Janco stock is $22.23 . Dividends are expected to grow at 6.01% indefinitely and the most recent dividend paid yesterday was $3.07. Compute the following for Janco stock:

a) The required rate of return:

b) The dividend yield:

c) Capital gains yield:

4.

Magnetic Corporation expects dividends to grow at a rate of 11.43% for the next two years. After two years, dividends are expected to grow at a constant rate of 3.51% , indefinitely. Magnetics required rate of return is 13.27% and they paid a $1.33 dividend today. Compute the following for Magnetic Corporations common stock:

a) Dividend at end of year 1 :

b) Dividend at end of year 2 :

c) Dividend at end of year 3 :

d) Price of stock at end of year 2 :

e) Price of stock today :

5.

What is the total percentage return for an investor who purchased a stock for $8.32 , received $1.63 in dividend payments, and sold the stock for $10.55?

6.

A stock has monthly returns of -1.78% , -10.50% , -11.97% , and 6.84% . What is the stocks geometric average return?