26,27,28,29

return its price change from the answer ancier Corporation's stock is selline lequired rate of 52 Mu Lompany stock? How much should cal om the answer you computed in part (a. stock is selling for $95. It has just paid a th ye hare. The expected growth rate in dividends is 3 26 Mercier Co dividend of $5 a share. Th percent What is the required rate of return on th sired rate of return on this stock? our answer to (a), suppose Mercier announces devel b. Using your answer to annually. What will (a), suppose developments occur ting that dividends will not change ments that should lead to dividend increases cally. What will be the new value of Mercier's stock? Again using your answer to (a), suppose developme that leave investors expecting that dividends will not me their current levels in the foreseeable future. Now what will be the value of Mercier stock? From your answers to (b) and (c), how important are inves tors' expectations of future dividend growth to the current stock price? - The common stock of RMW Inc. is selling at $88 a share. It just naid a dividend of S4. Investors expect a return of 15 percent on their investment in RMW Inc. From this information, what is the expected growth rate of future dividends? 28. Lerman Company has preferred stock outstanding. It pays an annual diy dend of $10. If its current price is $70, what discount rate will investors be using to value the stock? 29. Interpret the following stock price quote. In addition, what are Sizzler's approximate earnings per share? What was the stock's clos- ing price the previous day? YTD 52 WEEKS YLD VOL NET % CHG HILO STOCK SYM DIV % PE 1005 LAST CHG +17.3 7.13 5.00 Sizzlr SZ 0.16 2.7 25 844 6 -0.25