3

1. The dividend yield of a stock is 5 percent. If the market price of the stock is $18 per share and its dividends have been growing at a constant rate of 6%, what was the most recent dividend paid by the company?
2. A. $1.19
3. B. $1.70
4. C. $1.36
5. D. $1.02
6. E. $1.53
7. F. $0.85

5 points

Question 4

1. Riverhawk Sport Authority (RSA) will pay a dividend of $7 for each of the next 3 years, $8 for each of the years 4-6, $9 for each of the years 7-9, and a dividend of $10 for year 10. Thereafter, the company will pay no dividends.If you require 16 percent rate of return on investments in this risk class, how much is this stock worth to you?
2. A. $37.80
3. B. $44.66
4. C. $46.68
5. D. $42.77
6. E. $41.00
7. F. $39.35