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5. Charles Berkeley. Inc. just paid an annual dividend of $3.60 per share on its stock. The dividends are expected to grow at a constant

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5. Charles Berkeley. Inc. just paid an annual dividend of $3.60 per share on its stock. The dividends are expected to grow at a constant rate of 4.5 percent per year, indefinitely. If investors require an 11 percent return on this stock, what will the price be in 12 years? 6. Solar Energy. Inc. will pay an annual dividend of $1.85 next year. The company just announced that future dividends will be increasing by 2 percent annually. How much are you willing to pay for one share of this stock if you require a 14 percent return? 7. The stock price of Russell, Inc. is $81. Investors require a 14 percent rate of return on similar stocks. If the company plans to pay a dividend of $4.20 next scar, what growth rate is expected for the company's stock price? 8. Best Western has $1.000 face value bonds outstanding. These bonds pay interest semiannually, mature in six years, and have a 5 percent coupon. The current price is quoted at 101 percent of par. What is the yield to maturity? 5. Charles Berkeley. Inc. just paid an annual dividend of $3.60 per share on its stock. The dividends are expected to grow at a constant rate of 4.5 percent per year, indefinitely. If investors require an 11 percent return on this stock, what will the price be in 12 years? 6. Solar Energy. Inc. will pay an annual dividend of $1.85 next year. The company just announced that future dividends will be increasing by 2 percent annually. How much are you willing to pay for one share of this stock if you require a 14 percent return? 7. The stock price of Russell, Inc. is $81. Investors require a 14 percent rate of return on similar stocks. If the company plans to pay a dividend of $4.20 next scar, what growth rate is expected for the company's stock price? 8. Best Western has $1.000 face value bonds outstanding. These bonds pay interest semiannually, mature in six years, and have a 5 percent coupon. The current price is quoted at 101 percent of par. What is the yield to maturity

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