1. The common stock of the Paper & Printing Co. is selling for $27 a share and has a dividend yield of 4.2%. What is the next annual dividend?

2. Scenic Images paid an annual dividend of $2.10 per share last year. Management just announced that future dividends will increase by 3.4% annually. What is the amount of the expected dividend in year 3?

3. Anthony's Appliances pays a constant quarterly dividend of $0.36 per share. How much are you willing to pay for one share if you require a 6.5% rate of return? (Hint: First fine the annual dividend.)

4. SRS Inc. just paid an annual dividend of $1.20 last month. The required return is 9.7% and the growth rate is 4.2%. What is the expected value of this stock five years from now?

5. Locksmith's is expected to pay an annual dividend of $0.75 later this month. The stock is selling for $20.79 a share and has a required return of 5.8%. What is the growth rate of the dividend?