Financial Management Chapter 7 1. Remal Corporation has a current annual cash dividend policy of AED 3. The price of the stock is set to yield 14% return. What is the price of this stock if the dividend will be paid a. for 15 years? b. for 12 years? c. forever? 2. Hadeel Corporation has an annual cash dividend policy that raises the dividend each year by 6%. Last year's dividend was AED 1.50 per share. What is the price of this stock if a. an investor wants a 8% return? b. an investor wants an 10% return? e. an investor wants a 12% return? 3.The Moon Corporation just paid an annual dividend of AED 2.5 per share on its common stock. The dividend is expected to grow at a rate of 16 percent over the next four years It will then grow at a normal, constant rate of 10 percent for the foreseeable future. The required rate of return is 12 percent . Compute the current value of the stock. 4. Noor Corporation plans to offer its members preferred stock with a par value of $110 and a 8% annual dividend rate. If a member wants the following returns, what price should he or she be willing to pay? a. Samer wants 12% return. b. Harry wants 14% return 5. TAM expects the following dividend pattern over the next seven years: Year Year Year Year Year Year Year 2013 2014 2015 2016 2017 2018 2019 AED1.4 AED1.65 AED1.70 AEDl.77 AED1.82 AED1.85 AED1.92 Using the past 7 years of dividend history and a required rate of return of 14%, calculate the price of XTM's common stock