Chapter $7$ Assignment

Name

$q,$

A fimm recently paid an annual dividend of $$0\mathrm{.}50$ per share. The dividend is exprected to increase at an $8$ percent rate for the forseable fiture. The required retum is $15$ percent.

What the dividends for each of the next $4$ years? Do not roumd your answers.

Year $1$

Year$2$

Year $3$

Year $4$

What is the expected price of the stock today?

What is the experted value of the stock one year fiom now?

If you buy the stock for the price in $12$ and sell it in one year for the price in i$13,$ what is your total dollar retum and tobl percant retum?

Dollar retum

Percentrefim