1-You purchased a stock at $60 and kept it for 2 years after which its market price went up to $80, and at the same time the board of directors of the company decided to pay out $5 in cash dividends , what would be your dividend yield?

a25% b . 8.33% c. 6.25% d. 5.00 %

2-A serious investor is considering to buy a stock which is expected to pay $5 in year 1 and $4 in year 2 in cash dividends per share. At the end of year 2 , the investor is expected to sell it at selling price of $35. The investor's required rate of return is 10% How much the investor would be willing to pay to buy this stock ?

a. $5.45

b.$50.29

c.32.23

d.36.77

3- You purchased a stock at $60 and kept it for 2 years after which its market price went up to $80, and at the same time the board of directors of the company decided to pay out $5 in cash dividends, what would be your dividend yield?

a25% b8.33% c. 6.25% d. 5.00%