- A stock expects to pay a year-end dividend of $2.50 a share (i.e., D₁ = $2.50); assume that last years dividend has already been paid). The dividend is expected to decline 5 percent a year, forever (i.e., g = -5%). The companys expected and required rate of return is 12 percent. What is the current market price per share of this stock?

- The expected rate of return on the common stock of Northwest Corporation is 10 percent. The stocks dividend is expected to grow at a constant rate of 6 percent a year. The stock currently sells for $55 a share. What is the next expected dividend per share (i.e., D₁) on this stock?

- A share of preferred stock pays a quarterly dividend of $1.50. If the price of this preferred stock is currently $40, what is the nominal annual rate of return?

- Harper Manufacturing has realized the following annual sales dollar amounts:

2016: $12,500,000

2017: $16,000,000

2018: $18,000,000

Calculate the arithmetic average annual growth rate in sales dollars that Harper Manufacturing realized during the 2016 through 2018 time-frame.