1.The Starr Co. just paid a dividend of $2.00 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year, indefinitely. Investors require an 12 percent return on the stock.(Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.)

What is the current price?

Current price$

What will the price be in three years?

Stock price$

What will the price be in 12 years?

Stock price$

2.The next dividend payment by ECY Inc. will be $1.44 per share. The dividends are anticipated to maintain a 6 percent growth rate, forever. ECY stock currently sells for $26 per share.

What is the required return?(Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Required return%

3.White Wedding Corporation will pay a $1.90 per share dividend next year. The company pledges to increase its dividend by 3.78 percent per year, indefinitely.

If you require an 10 percent return on your investment, how much will you pay for the company's stock today?(Round the final answer to 2 decimal places. Omit $ sign in your response.)

Value of a stock$

4.Suppose you know that a company's stock currently sells for $54 per share and the required return on the stock is 9 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. It is the company's policy to always maintain a constant growth rate in its dividends.(Do not round intermediate calculations.Round the final answer to 2 decimal places. Omit $ sign in your response.)

What is the current dividend per share?

Current dividend per share$

5.Gruber Corp. pays a constant $9.65 dividend on its stock. The company will maintain this dividend for the next 12 years and will then cease paying dividends forever. The required return on this stock is 12 percent.

What is the current share price?(Do not round intermediate calculations.Round the final answer to 2 decimal places. Omit $ sign in your response.)

Current share price$

6.Ayden Inc. has an issue of preferred stock outstanding that pays a $3.35 dividend every year, in perpetuity. This issue currently sells for $90 per share.

What is the required return?(Do not round intermediate calculations.Round the final answer to 2 decimal places.)

Required return%

7.The newspaper reported last week that Bennington Enterprises earned $31.5 million this year. The report also stated that the firm's ROE is 19 percent. Bennington retains 55 percent of its earnings.

a.What is the firm's earnings growth rate?(Round the answer to 2 decimal places.)

Earnings growth rate%

b.What will next year's earnings be?(Enter the answer in dollars, not millions of dollars. Omit $ sign in your response.)

Next year's earnings$

8.Universal Laser Inc. just paid a dividend of $3.10 on its stock. The growth rate in dividends is expected to be a constant 6 percent per year, indefinitely. Investors require a 13 percent return on the stock for the first three years, a 11 percent return for the next three years, and then an 9 percent return thereafter.

What is the current share price for the stock?(Do not round intermediate calculations and round the final answer to 2 decimal places. Omit $ sign in your response.)

Current share price$

9.Metallica Bearings Inc. is a young start-up company. No dividends will be paid on the stock over the next eleven years, because the firm needs to plow back its earnings to fuel growth. The company will pay a $9.30 per share dividend in 12 years and will increase the dividend by 5.6 percent per year thereafter.

If the required return on this stock is 13.1 percent, what is the current share price?(Do not round intermediate calculations.Round the answer to 2 decimal places. Omit $ sign in your response.)

Share price$

10.Bucksnort Inc. has an odd dividend policy. The company has just paid a dividend of $7 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If you require a 14 percent return on the company's stock, how much will you pay for a share today?(Do not round intermediate calculations and round the final answer to 2 decimal places. Omit $ sign in your response.)

Current share price$

11.Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $7.40, but management expects to reduce the payout by 3 percent per year, indefinitely. If you require an 11 percent return on this stock, what will you pay for a share today?(Do not round intermediate calculations andround the answer to 2 decimal places. Omit $ sign in your response.)

Current share price$

12.Mau Corporation stock currently sells for $75 per share. The market requires an 8.8 percent return on the firm's stock. If the company maintains a constant 2.4 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?(Do not round intermediate calculations and round the answer to 2 decimal places. Omit $ sign in your response.)

Dividend paid per share$

13.Fifth National Bank just issued some new preferred stock. The issue will pay an $24 annual dividend in perpetuity, beginning thirteen years from now. If the market requires a 3.8 percent return on this investment, how much does a share of preferred stock cost today?(Do not round intermediate calculations and round the final answer to 2 decimal places. Omit $ sign in your response.)

Stock price$

Suppose a stock had an initial price of $105 per share, paid a dividend of $2.75 per share during the year, and had an ending share price of $117. Compute the percentage total return.(Do not round intermediate calculations.Round the final answer to 2 decimal places.)

Percentage of total return%

15.You bought a share of 3 percent preferred stock for $96.67 last year. The market price for your stock is now $98.43. The stock has a par value of $100.

What was your total return for last year?(Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Total return%

14.