#12. An Allied Northern preferred stock pays a $3.84 annual divided. What is the value of the stock to an investor who requires a 9.5 percent return?

A. 40.42

B. 42.6

C. 38.40

D. 39.21

#13. What is the value of a share of stock of HOV Inc. to an investor who requires a 12% rate of return if HOVs current dividend is $1.20? Assume earnings and dividends are expected to grow at compound annual rate of 7%?

A. 24.00

B. 18.34

C. 25.68

D. 19.82

#14. The current price of a Zebar is $32.00 and the current divided is $0.60. What is an investors required rate of return on Zebar if dividends are expected to grow perpetually at a compound annual rate of 8%?

A. 9.88

B. 11.38

C. 18.75

D. 10.03

#15. What is the current value of Bandag Inc. to an investor who has a required rate of return of 12%? The current dividend is $1.00 and the dividends are expected to grow 8% per year for 3 years. At the end of 3 years the investor expects to sell the security of $76.

A. 79.51

B. 56.90

C. 51.13

D. 76.00