13. A company earns $2.00 per share in 2012 and pays dividends 70% (0.70) in 2012. If the firm has ROE 30%, what is the expected dividend IN 2013

a. 0.09

b. 0.763

c. 0.08

d. 0.648

14. Bayyoud Corp. is expected to earn $2.00, $2.20, and $2.40 per share in each of the next 3 years. At the end of the third year, the stock is expected to sell at a current yield of 3%. If the corp. dividends payout ratio of 25%. If an investor demands a 15% return for investing in Bayyouds Corp. how much should the investor be willing to pay for the shares today.

a. $14.40

b. $12.68

c. $16.67

15)What is the value of a 6 year, 4.4% coupon rate that pays interest semi-annually if its yield to maturity is 4%.

a. $981.24

b. $1,021.15

c. $1,026.95