ANSWER THEM ALL!!

Problem 08-2: Common Stock Market Price

If you purchase common stock at 45 SAR per share, hold it for 1 year, and then sell it after a dividend of 5 SAR is paid.

How much will the stock price have to appreciate for you to satisfy your required rate of return of 15 percent?

Problem 08-3- Preferred Stock Value

You are considering an investment in a company's preferred stock. The preferred stock pays a dividend of 2.25 SAR. Your required retuns is 11 percent. Value the stock.

Problem 08-4: Growth Rate

A firm's return on equity is 15 percent and is planning to retain 35 percent of earnings for investment purposes, what will be the firm's growth rate?

Problem 08-5: Dividend Constant Model-Stock Expected Rate of Return

A company paid a dividend of 25 SAR last year and the shares are selling for 320 SAR per share. The dividend is expected to grow at 5% indefinitely. What is the stock's expected rate of return?