1. Best Chocolate corporation paid is a dividend of $1.30 at the end of last year. Last year the company earned $1.87 per share and paid Dividends are expected to grow indefinitely. Given a 12.15% ROE and the fact that the investors rate of return for a firm like Best Chocolate characteristics is 8.5%. Compute the value of the stock.

   		$27.98
   		$28.09
   		$31.89
   		$30.98

2. You purchased 500 shares of HSBC preferred stock at $45 per share. Each share of preferred stock pays a $4.50 dividend .If your required rate of return as an investor is 8%, what value would you assign to the stock? What if the price of the stock was $47.50, the stock dividend was $3.50, and your required rate of return was 7.5%?

   		$56.25 ; $64.29
   		$56.25; $46.67
   		$49.50; 46.67
   		$31.50 ; $56.25

3. All In Corporations common shareholders expect to receive $1.635 per share dividend next year based on the fact that they received $1.50 last year and they expect dividend to grow 9% next year. Furthermore, analysts predict that dividends will continue to grow at a rate of 10% into the foreseeable future. If All In were to issue common stock at $37.50 a share, the firm would incur a $4.50 per share cost to sell the new shares. What is the cost of the new common stock issue?

   		11.97%
   		13.95%
   		12.91%
   		14.86%