Question
Answer all of these questions with the right question number next to the correct choice. ANSWER ALL OR NONE 9-A stock currently sells for $5.
Answer all of these questions with the right question number next to the correct choice. ANSWER ALL OR NONE
9-A stock currently sells for $5. The stock is expected to sell for $7.50 at the end of 1 year and is also expected to pay a 50 cent dividend at the end of 1 year. What is the capital gains yield of the stock?
A)50%
B)15%
C)5%
D)10%
10-InTheDark's common stock has a required rate of return of 13% and a declared annual dividend of $4. Future dividends are expected to grow 2.3% per year. What possible course of action is open to InTheDark's management and board of directors to increase the company's stock price?
A)Increase the company's growth rate
B)Increase the dividend payout
C)Increase the dividend payout and/or increase the growth rate
D)Increase the required rate of return
11-A stock is expected to pay quarterly dividends of $2, $2.10, and $2.05, after which the stock is expected to pay a constant dividend of $2 per quarter. You have a required rate of return of 14%. What is the expected price of the stock?
A)$57.28
B)$5.94
C)$5.74
D)$59.19
12-A stock currently sells for $5. The stock is expected to sell for $7.50 at the end of 1 year and is also expected to pay a 50 cent dividend at the end of 1 year. What is the dividend yield of this stock?
A)10%
B)0.5%
C)5%
D)0.1%
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