6-

Ks Fashions is growing quickly. Dividends are expected to increase by 15 percent annually for the next three years, with the growth rate falling off to a constant 5 percent thereafter. The required return is 16 percent and the company just paid a $3.80 annual dividend. What is the current share price?

$28.96

$31.11

$46.55

$48.87

$52.20

7-

Home Products common stock sells for $18.31 a share and has a market rate of return of 12.8 percent. The company just paid an annual dividend of $1.42 per share. What is the dividend growth rate?

5.27 percent

4.45 percent

5.01 percent

4.29 percent

4.68 percent

8-

Jensen Shipping currently has an EPS of $5.29, a benchmark PE of 19.5, and an earnings growth rate of 4.3 percent. What is the target share price 4 years from now?

$127.32

$131.15

$138.47

$122.08

$109.42

9-

The owner of a trading license for the NYSE is called a:

Broker.

Member.

Agent.

Specialist.

Dealer.

10-

An individual on the floor of the NYSE who owns a trading license and buys and sells for his or her personal account is called a:

Floor trader.

Exchange customer.

Specialist.

Floor broker.

Market maker.

13-

The common stock of Water Town Mills pays an annual dividend of $1.84 a share. The company has promised to maintain a constant dividend even though economic times are tough. How much are you willing to pay for one share of this stock if you want to earn a 13.6 percent annual return?

$13.53

$14.01

$14.56

$13.79

$13.28

14-

Hot Teas common stock is currently selling for $41.04. The last annual dividend paid was $1.31 per share and the market rate of return is 11.2 percent. At what rate is the dividend growing?

7.76 percent

6.67 percent

8.42 percent

8.60 percent

6.10 percent