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question 1(1 point)

The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.00 per share on its stock. The dividends are expected to grow at a constant rate of 2 percent per year indefinitely. Ifinvestorsrequire a 13 percent return on The Jackson-Timberlake Wardrobe Co. stock, what is the current price? Answer with 2 decimals (e.g. 10.12).

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Question 2(1 point)

Far Side Corporation is expected to pay the following dividends over the next four years: $2, $8, $1, and $7. Afterward, the company pledges to maintain a constant 0.07 growth rate in dividends forever. If the required return on the stock is 0.14, what is the current share price? Answer with 2 decimals (e.g. 45.45).

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Question 3(1 point)

E-Eyes.com Bank just issued some new preferred stock. The issue will pay a $8 annual dividend in perpetuity, beginning 10 years from now. If themarketrequires a 0.07 return on this investment, how much does a share of preferred stock cost today? Enter the answer with 2 decimals (e.g. 45.45).

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Question 4(1 point)

Suppose you know a company's stock currently sells for $53 per share and the required return on the stock is 0.10. You also know that the required return is evenly divided between the capital gains yield (G) and the dividend yield (D1/P0) (this means that if the required retun is 9%, the capital gains yield is 4.5% and the dividend yield is 4.5%).If it's the company's policy to always maintain a constant growth rate in its dividends, what is thecurrentdividend per share? Answer with 2 decimals (e.g. 1.23)

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Question 5(1 point)

Suppose you know a company's stock currently sells for $28 per share and the required return on the stock is 0.13. You also know that the required return is evenly divided between the capital gains yield (G) and the dividend yield (D1/P0) (this means that if the required retun is 9%, the capital gains yield is 4.5% and the dividend yield is 4.5%).If it's the company's policy to always maintain a constant growth rate in its dividends, what is thenextdividend per share? Answer with 2 decimals (e.g. 1.23)

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Question 6(2 points)

Marcel Co. is growing quickly. Dividends are expected to grow at a rate of 0.11 for the next 4 years, with the growth rate falling off to a constant 0.05 thereafter. If the required return is 0.08 and the company just paid a $1.58 dividend, what is the current share price? Answer with 2 decimals (e.g. 45.45).

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Question 7(1 point)

Apocalyptica Corp. pays a constant $8.94 dividend on its stock. The company will maintain this dividend for the next 12 years and will then cease paying dividends forever.Ifthe required return on this stock is 15 percent, what is the current share price? Answer with 2 decimals (e.g. 45.45).

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Question 8(1 point)

The next dividend payment by Hot Wings, Inc., will be $1.53 per share. The dividends are anticipated to maintain a 0.07 growth rate forever. If the stock currently sells for $22 per share, what is the required return? Anser with 4 decimals (e.g. 0.1234)

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Question 9(1 point)

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 7 years because the firm needs to plow back its earnings to fuel growth. The company will pay a $9.56 per share dividend in 8 years and will increase the dividend by 0.06 per year thereafter. If the required return on this stock is 0.08, what is the current share price? Answer with 2 decimals (e.g. 45.45).