Bayou Okra Farms just paid a dividend of $3.15 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a return of 13 percent for the first three years, a return of 11 percent for the next three years, and a return of 9 percent thereafter. What is the current share price?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Current share price

$

2.

Secolo Corporation stock currently sells for $52 per share. The market requires a return of 8.4 percent on the firms stock. If the company maintains a constant 2.2 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Dividend paid per share

$3

3.

E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $20 in perpetuity, beginning 9 years from now. If the market requires a return of 3.4 percent on this investment, how much does a share of preferred stock cost today?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price

$

4.

Storico Co. just paid a dividend of $1.70 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on Storico stock is 11 percent, what will a share of stock sell for today?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price

$

5.

Suppose a stock had an initial price of $80 per share, paid a dividend of $.60 per share during the year, and had an ending share price of $88.

What was the dividend yield and the capital gains yield?(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Dividend yield	%

6.

Youve observed the following returns on Crash-n-Burn Computers stock over the past five years: 16 percent, 16 percent, 18 percent, 28 percent, and 10 percent. Suppose the average inflation rate over this period was 2.1 percent and the average T-bill rate over the period was 4.2 percent.

a.	What was the average real return on Crash-n-Burns stock?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Average real return

%

b.	What was the average nominal risk premium on Crash-n-Burns stock?(Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)

Average nominal risk premium

%