1-Michael's, Inc. just paid $2.35 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.10 percent. If you require a rate of return of 9.3 percent, how much are you willing to pay today to purchase one share of Michael's stock?

$29.40

$17.15

$58.81

$26.56

$61.16

2-

Shares of common stock of the Samson Co. offer an expected total return of 12.0 percent. The dividend is increasing at a constant 6.7 percent per year. The dividend yield must be:

6.70 percent.

12.00 percent.

18.70 percent.

5.30 percent.

1.79 percent.

3-

The Red Bud Co. pays a constant dividend of $2.80 a share. The company announced today that it will continue to do this for another 2 years after which time they will discontinue paying dividends permanently. What is one share of this stock worth today if the required rate of return is 8.4 percent?

$4.97

$7.77

$5.60

$3.04

$3.16

4-

Global Logistics just announced it is increasing its annual dividend to $1.68 next year and establishing a policy whereby the dividend will increase by 3.25 percent annually thereafter. How much will one share of this stock be worth ten years from now if the required rate of return is 13.5 percent?

$22.57

$21.68

$26.51

$27.02

$27.37

5-

Hardy Lumber has a capital structure that includes bonds, preferred stock, and common stock. Which one of the following rights is most apt to be granted to the preferred shareholders?

Right to share in company profits prior to other shareholders.

Right to elect the corporate directors.

Right to vote on proposed mergers.

Right to all residual income after the common dividends have been paid.

Right to a permanent seat on the board of directors.