Gamma Corp. recently paid a dividend of $3.30 per share (note, this is D0). Calculate the value of one share to an investor who requires a 10.60% rate of return and who assumes that dividends will grow at a constant annual annual rate of 5.60%.

Enter the stock price to 2 decimal places, a price of $21.25 should be entered as 21.25

Your Answer:

Question 1 options:

Answer

Question 2(1 point)

Baker's Inc. has outstanding $100 par value preferred stock. The stock pays $10.87 per year in dividends and the stock is selling for $119.50/share. What is the current required rate of return on this stock?

Enter the preferred stock's required return to 2 decimal places, a 5.75% required return should be entered as 5.75

Your Answer:

Question 2 options:

Answer

Question 3(1 point)

Acme Corp. has outstanding $100 par value preferred stock. The stock pays $3.67 in dividends every year. It the current required rate of return on this stock is 9.5%, what should the stock be selling for?

Enter the stock price to 2 decimal places, xxx.xx

Your Answer:

Question 3 options:

Answer

Question 4(1 point)

Higlow Inc. expects to pay $1.05 per share at the end of the year and the dividends will grow at a constant annual annual rate of 2.10%. If this stock is currently priced at $98.00/share, what is the stock's capital gains yield?.

Enter the dividend yield to 2 decimal places (xx.xx), a return of 8.75% would be entered as 8.75

Your Answer:

Question 4 options:

Answer

Question 5(1 point)

Echelon Inc. reported net income of $8.5mm and owners' equity of $75mm. The firm paid dividends (on the $8.5mm) equal to $3.4mm. The payout ratio is expected to continue in the future. What is the firm's expected constant growth rate?

Hint, you will need to calculate the payout ratio and return on equity (ROE) first.

Question 5 options:

4.53%

6.8%

8.25%

11.33%

Question 6(1 point)

Echo Incorporated is expected to pay a dividend of $0.90 per shareat the end of the year and the dividends will grow at a constant annual annual rate of 5.40%. Calculate the rate of return for the investor who purchases this stock at $55.35/share.

Enter the required return to 2 decimal places (xx.xx), a return of 8.75% would be entered as 8.75

Your Answer:

Question 6 options:

Answer

Question 7(1 point)

Higlow Inc. expects to pay $1.90 per share at the end of the year and the dividends will grow at a constant annual annual rate of 2.70%. If this stock is currently priced at $76.85/share, what is the stock's dividend yield?.

Enter the dividend yield to 2 decimal places (xx.xx), a return of 8.75% would be entered as 8.75

Your Answer:

Question 7 options:

Answer

Question 8(1 point)

Acme Corp. has outstanding $100 par value preferred stock. The stock pays 14.54% of par in dividends every year. It the current required rate of return on this stock is 5.4%, what should the stock be selling for?

Enter the stock price to 2 decimal places, xxx.xx

Your Answer:

Question 8 options:

Answer

Question 9(1 point)

Davis Industries recently paid a dividend of $0.90 per share (note, this is D0) and the dividends will grow at a constant annual annual rate of 6.50%. Calculate the rate of return for the investor who purchases this stock at $112.75/share.

Enter the required return to 2 decimal places (xx.xx), a return of 8.75% would be entered as 8.75

Your Answer:

Question 9 options:

Answer

Question 10(1 point)

Desperation Inc. expects to pay a dividend of $2.65 per share at the end of the year (note, this is D1). Calculate the value of one share to an investor who requires a 17.25% rate of return and who assumes that dividends will grow at a constant annual annual rate of -5.40%.

Enter the stock price to 2 decimal places, a price of $21.25 should be entered as 21.25