Banz Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 4.5% per year in the future. The company's beta is 1.25, the required return on the market is 10.5%, and the risk-free rate is 4.5%. What is the company's current stock price? *

A. $10.45

B. $10.89

C. $12.26

D. $12.64

E. None of the above

Panamas stock has a required return of 12%, and the stock sells for $40 per share. The firm just paid a dividend of $1, and the dividend is expected to grow by 30% per year for the next 4 years, so D4 = $1(1.30)4 = $2.8561. After t = 4, the dividend is expected to grow at a constant rate of X% per year forever. What is the stocks expected constant growth rate after t = 4, i.e., what is X? *

A. 5.17%

B. 5.44%

C. 5.72%

D. 6.34%

E. None of the above

Dual Power Company is expected to pay a dividend of $4 next period, and dividends are expected to grow at 6% per year. If the required return is 16% and the current price (P0) is $40, what is the stock price at year 4 (P4)? *

A. $45.10

B. $48.20

C. $50.49

D. $52.30

E. None of the above

Suppose a firm is expected to increase dividends by 20% in one year and by 15% in two years. After that, dividends will increase at a rate of 5% per year indefinitely. If the next dividend is $1.20 and the required return is 20%, what is the price of the stock? *

A. $6.51

B. $7.81

C. $8.67

D. $9.64

E. $9.66

The last dividend (D0) of stock Y was $2.25 and g (which is constant) = 4%. If the stock price is $50, what is the stocks expected dividend yield for the coming year? *

A. 4.12%

B. 4.68%

C. 4.99%

D. 5.13%

E. None of the above