4. Wilk Productions wants its shareholders to earn a 12% return on their investment in the company. At what value

would Wilk stock be priced if the company paid $2.75 per share in constant annual dividends forever?

Solution: $22.92

$2.750.12=$22.92

5. Dax Industrial Systems has stock currently priced at $50.00 per share. If investors are earning a 7% return on Dax Industrial, what is the companys annual dividend payment per share?

Solution: $3.50

Div0.07=$50.00

Annual Dividend = $3.50 per share