72Last year, Julie Johnson bought one share of common stock for $950. During the year, Julie received a $47.50 dividend. Earlier today, she sold the stock for $988. (a) What rate of return did Julie earn on her investment? (b) What were the (1) dividend yield and (2) the capital gains yield associated with holding the stock?

74The Ape Copy Companys preferred stock pays an annual dividend equal to $16.50. If investors demand a return equal to 11 percent to purchase Apes preferred stock, what is its market value?

76Your broker offers to sell you shares of Wingler & Company common stock, which paid a dividend of $2 yesterday. You expect the dividend to grow at a rate of 5 percent per year into perpetuity. If the appropriate rate of return for the stock is 12 percent, what is the market value of Winglers stock?

77Alpine Ski Resort has grown at a constant rate, which equals 4 percent, for as long as it has been in business. This growth rate is expected to continue long into the future. A couple of days ago, Alpine paid common stockholders a dividend equal to $3 per share. If investors require a 10 percent rate of return to purchase Alpines common stock, what is the market value of its common stock?

78Since it started business 10 years ago, Alphafem Company has paid a constant $1.20 per share dividend to its common stockholders. Next year and every year thereafter, the company plans to increase the dividend at a constant rate equal to 2.5 percent per year. If investors require a 15 percent rate of return to purchase Alphafems common stock, what is the market value of its common stock?

711 Since it has been in business, FoolsGold Jewelry has never paid a dividend. The company will not pay a dividend at the end of this year. However, two years from todayat the end of Year 2FoolsGold expects to pay a dividend equal to $0.50 per share, which it plans to increase by 6 percent each year thereafter for the remainder of the companys life. If investors require a 14 percent rate of return to purchase its common stock, what should be the market value of FoolsGolds stock today?