Question
Answer all of these questions with the right question number next to the correct choice. ANSWER ALL OR NONE 1-Given an annual expected rate of
Answer all of these questions with the right question number next to the correct choice. ANSWER ALL OR NONE
1-Given an annual expected rate of return of 18% and a dividend yield of 13%, what is the capital gains yield?
A)5%
B)31%
C)2.34%
D)1.38%
2-The preferred stock of Equity Finance Company is selling in lots of 100 shares per lot. If Equity pays a quarterly dividend of $1.42 and the company's market rate is 11.75%, what is the present value of a lot of 100 stocks?
A)$1,208.51
B)$4,834.04
C)$48.34
D)$100.00
3-A common stock is expected to pay a $2 dividend at the end of 6 months, and you expect the stock's dividends to grow at a constant 8% rate. If investors require a 10% return on this stock, what is the expected price of the stock?
A)$200
B)$100
C)$2
D)$0.01
A constant dividend growth stock just declared a dividend of $0.75 paid annually. If the growth rate is 6.04% and the required rate is 9.21%, what is the price of the stock.
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