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9 finance questions. Please be very careful when you answer these questions because they are tricky. If I get full mark on the homework, I

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9 finance questions. Please be very careful when you answer these questions because they are tricky. If I get full mark on the homework, I will tip.

image text in transcribed 1)The total return on a share of stock refers to the dividend yield less any commissions paid when the stock is purchased or sold. a) True b) False 2)If a firm's stockholders are given a preemptive right, this means that a group of stockholders can call a special vote at any time. a)True b)False 3)The voting procedure where shareholders may cast all of their votes (equals the number of shares times the number of board members to be elected) for one member of the board is: a)proxy voting b)preemptive voting c)straight voting d)cumulative voting 4)Dividends on the common stock of Ronto Corp. are expected to grow at a constant rate forever. If you are given Ronto's most recent dividend paid, its dividend growth rate, and a discount rate, you can calculate a)The price today b)the expected price five years from now c)the dividend is expected to be paid twenty years from now d) all of the above c)none of the above 5) A share of preferred stock with an annual dividend of $8 is selling for $120. What is the required rate of return for the preferred stock? 6) You forecast a company's dividends for the next three years. In Year 1, you expect to receive $2.00 in dividends. In Year 2, you expect to receive $4.00 in dividends. In Year 3, you expect to receive $6.00 in dividends. After Year 3, dividends are expected to grow at 5%. The rate of return for similar risk common stock is 7%. What is the current value of this company's stock? 7)The current price of Wampa Inc. stock is $75. Dividends are expected to grow at 7% indefinitely and the most recent dividend was $3. What is the required rate of return on Wampa Inc. stock? 8)Hoth, Inc. will pay a dividend of $10 next year. Dividends are expected to grow at 3% after next year's dividend. The required rate of return for similar stocks is 5%. What is the current value of Hoth, Inc. stock? 9) Alphabet Inc. will not pay it's first dividend until twenty years from now. The first dividend received in 20 years is expected to be $498. Dividends are expected to grow at 10% forever after this first dividend payment (years 21 through forever). The required rate of return for similar stocks is 15%. What is the current value of Alphabet, Inc. stock

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