Answer all of these questions with the right question number next to the correct choice. ANSWER ALL OR NONE

5-Bionetics Corp. is expected to grow 25% per year for the next 3 years. Its declared dividend is $2.55. Thereafter the company is expected to level off at an annual growth rate of 10%. If its required rate of return is 15%, what is the value of a share of Bionetics stock today? (Draw a timeline to represent this problem.)

A)$63.75

B)$81.10

C)$83.58

D)$56.10

6-During a corporate liquidation due to bankruptcy, which of the following is least likely to receive compensation for asset ownership in the company?

A)None of the above

B)Common equity holders

C)Preferred stockholders

D)Bondholders

7-Given a declared semiannual dividend of $2, a stock price of $40, and a growth rate of 10%, what is the annual dividend yield on the stock?

A)5.5%

B)10.5%

C)5.25%

D)2.75%

8-A stock you own is expected to have the following annual dividends over the next 5 years: $1, $0.90, $0.85, $1.05, and $1. Your required rate of return on the stock is 10% and you expect to sell the stock for $7.75 at the end of 5 years. What is the value of the stock today?

A)$3.63

B)$9.29

C)$11.38

D)$8.44