1.(Common stock valuation) Mosser Corporation's common stock paid $1.32 in dividends last year and is expected to grow indefinitely at an annual 7 percent rate. What is the value of the stock if you require an 11 percent return?

2. (Common stock valuation) Dalton Inc., has an 11.5 percent return on equity and retains 55 percent of its earnings for reinvestment purposes. It recently paid a dividend of $3.25 and the stock is currently selling for $40.

What is the growth rate for Dalton, Inc.?

What is the expected return for Dalton's stock?

If you require a 13 percent return, should you invest in the firm?

3.(Common stock valuation) Schlumberger is selling for $64.91 per share and paid a dividend of $1.10 last year. The dividend is expected to grow at 4 percent indefinitely. What is the stock's expected rate of return?

4.How do gross profits, operating profits, and net income differ?

5.What is net working capital?