• A preferred stock from Hecla Mining Co. (HLPRB) pays $3.20 in annual dividends. If the required return on the preferred stock is 6.20 percent, what is the value of the stock?
• Ultra Petroleum (UPL) has earnings per share of $1.69 and a P/E ratio of 33.20. What's the stock price?
• Financial analysts forecast Limited Brands (LTD) growth rate for the future to be 11.5 percent. LTD's recent dividend was $0.55. What is the value of Limited Brands stock when the required return is 13.5 percent?
• Suppose that a firm's recent earnings per share and dividend per share are $2.20 and $1.20, respectively. Both are expected to grow at 10 percent. However, the firm's current P/E ratio of 21 seems high for this growth rate. The P/E ratio is expected to fall to 17 within five years. What is the dividends over the next five years?