Hello - I need help with these questions; QUESTION 1 A stock has a market price of $46.10 and pays a $2.40 annual dividend. What
Hello - I need help with these questions;
QUESTION 1
A stock has a market price of $46.10 and pays a $2.40 annual dividend. What is the dividend yield?
4.13 percent | |
4.84 percent | |
5.21 percent | |
5.52 percent | |
5.78 percent |
QUESTION 2
For the past six years, the price of Slate Rock stock has been increasing at a rate of 8.6 percent a year. Currently, the stock is priced at $47 a share and has a required return of 14 percent. What is the dividend yield?
1.20 percent | |
2.87 percent | |
3.39 percent | |
4.28 percent | |
5.40 percent |
QUESTION 3
The required return on Mountain Meadow stock is 14 percent and the dividend growth rate is 3.5 percent. The stock is currently selling for $11.80 a share. What is the dividend yield?
7.50 percent | |
8.00 percent | |
9.75 percent | |
10.50 percent | |
12.50 percent |
QUESTION 4
Healthy Foods just paid its annual dividend of $1.45 a share. The firm recently announced that all future dividends will be increased by 2.8 percent annually. What is one share of this stock worth to you if you require a 14 percent rate of return?
$12.56 | |
$12.95 | |
$13.31 | |
$13.68 | |
$14.07 |
QUESTION 5
The Cart Wheel plans to pay an annual dividend of $1.20 per share next year, $1.00 per share a year for the following two years, and then cease paying dividends altogether. How much is one share of this stock worth to you today if you require a 17 percent rate of return?
$2.38 | |
$2.43 | |
$2.56 | |
$2.60 | |
$2.64 |
QUESTION 6
Auto Transmissions is expected to pay annual dividends of $1.90 and $2.10 over the next two years, respectively. After that, the company expects to pay a constant dividend of $2.30 a share. What is the value of this stock at a required return of 15 percent?
$13.67 | |
$14.21 | |
$14.83 | |
$15.08 | |
$15.60 |
QUESTION 7
A firm expects to increase its annual dividend by 20 percent per year for the next two years and by 15 percent per year for the following two years. After that, the company plans to pay a constant annual dividend of $3 a share. The last dividend paid was $1.00 a share. What is the current value of this stock if the required rate of return is 12 percent?
$17.71 | |
$18.97 | |
$20.50 | |
$21.08 | |
$21.69 |
QUESTION 8
New Gadgets is growing at a very fast pace. As a result, the company expects to pay annual dividends of $0.55, 0.80, and $1.10 per share over the next three years, respectively. After that, the dividend is projected to increase by 5 percent annually. The last annual dividend the firm paid was $0.40 a share. What is the current value of this stock if the required return is 16 percent?
$8.50 | |
$9.67 | |
$10.46 | |
$12.23 | |
$12.49 |
QUESTION 9
General Importers announced today that its next annual dividend will be $2.60 per share. After that dividend is paid, the company expects to encounter some financial difficulties and is going to suspend dividends for 5 years. Following the suspension period, the company expects to pay a constant annual dividend of $1.30 per share. What is the current value of this stock if the required return is 18 percent?
$3.01 | |
$3.55 | |
$3.89 | |
$4.27 | |
$4.88 |
QUESTION 10
Blackwell Ink is losing significant market share and thus its managers have decided to decrease the firm's annual dividend. The last annual dividend was $0.90 a share but all future dividends will be decreased by 5 percent annually. What is a share of this stock worth today at a required return of 15 percent?
$4.07 | |
$4.28 | |
$4.49 | |
$4.72 | |
$4.95 |
QUESTION 11
Business Services, Inc. is expected to pay its first annual dividend of $0.80 per share three years from now. Starting in year six, the company is expected to start increasing the dividend by 2 percent per year. What is the value of this stock today at a required return of 12 percent?
$6.16 | |
$6.47 | |
$6.63 | |
$7.22 | |
$7.47 |
QUESTION 12
The Border Crossing just paid an annual dividend of $4.20 per share and is expected to pay annual dividends of $4.40 and $4.50 per share the next two years, respectively. After that, the firm expects to maintain a constant dividend growth rate of 2 percent per year. What is the value of this stock today if the required return is 14 percent?
$30.04 | |
$32.18 | |
$33.33 | |
$35.80 | |
$36.75 |
QUESTION 13
The Market Place recently announced that it will pay its first annual dividend two years from today. The first dividend will be $0.50 a share with that amount doubling each year for the following two years. After that, the dividend is expected to increase by 4 percent annually. What is the value of this stock today if the required return is 15 percent?
$11.68 | |
$12.47 | |
$12.99 | |
$14.02 | |
$14.94 |
QUESTION 14
Plastics, Inc. will pay an annual dividend of $1.85 next year. The company just announced that future dividends will be increasing by 2.25 percent annually. How much are you willing to pay for one share of this stock if you require a 16 percent return?
$13.45 | |
$13.61 | |
$13.76 | |
$14.02 | |
$14.45 |
QUESTION 15
Atlas Home Supply has paid a constant annual dividend of $2.40 a share for the past 15 years. Yesterday, the firm announced the dividend will increase next year by 10 percent and will stay at the level through year three, after which time the dividends will increase by 2 percent annually. The required return on this stock is 12 percent. What is the current value per share?
$25.51 | ||
$26.08 | ||
$24.57 | ||
$26.02 | ||
$26.84 | ||
|
|
|
QUESTION 1 A stock has a market price of $46.10 and pays a $2.40 annual dividend. What is the dividend yield? 4.13 percent 4.84 percent 5.21 percent 5.52 percent 5.78 percent QUESTION 2 For the past six years, the price of Slate Rock stock has been increasing at a rate of 8.6 percent a year. Currently, the stock is priced at $47 a share and has a required return of 14 percent. What is the dividend yield? 1.20 percent 2.87 percent 3.39 percent 4.28 percent 5.40 percent QUESTION 3 The required return on Mountain Meadow stock is 14 percent and the dividend growth rate is 3.5 percent. The stock is currently selling for $11.80 a share. What is the dividend yield? 7.50 percent 8.00 percent 9.75 percent 10.50 percent 12.50 percent QUESTION 4 Healthy Foods just paid its annual dividend of $1.45 a share. The firm recently announced that all future dividends will be increased by 2.8 percent annually. What is one share of this stock worth to you if you require a 14 percent rate of return? $12. 56 $12. 95 $13. 31 $13. 68 $14. 07 QUESTION 5 The Cart Wheel plans to pay an annual dividend of $1.20 per share next year, $1.00 per share a year for the following two years, and then cease paying dividends altogether. How much is one share of this stock worth to you today if you require a 17 percent rate of return? $2.3 8 $2.4 3 $2.5 6 $2.6 0 $2.6 4 QUESTION 6 Auto Transmissions is expected to pay annual dividends of $1.90 and $2.10 over the next two years, respectively. After that, the company expects to pay a constant dividend of $2.30 a share. What is the value of this stock at a required return of 15 percent? $13. 67 $14. 21 $14. 83 $15. 08 $15. 60 QUESTION 7 A firm expects to increase its annual dividend by 20 percent per year for the next two years and by 15 percent per year for the following two years. After that, the company plans to pay a constant annual dividend of $3 a share. The last dividend paid was $1.00 a share. What is the current value of this stock if the required rate of return is 12 percent? $17. 71 $18. 97 $20. 50 $21. 08 $21. 69 QUESTION 8 New Gadgets is growing at a very fast pace. As a result, the company expects to pay annual dividends of $0.55, 0.80, and $1.10 per share over the next three years, respectively. After that, the dividend is projected to increase by 5 percent annually. The last annual dividend the firm paid was $0.40 a share. What is the current value of this stock if the required return is 16 percent? $8.5 0 $9.6 7 $10. 46 $12. 23 $12. 49 QUESTION 9 General Importers announced today that its next annual dividend will be $2.60 per share. After that dividend is paid, the company expects to encounter some financial difficulties and is going to suspend dividends for 5 years. Following the suspension period, the company expects to pay a constant annual dividend of $1.30 per share. What is the current value of this stock if the required return is 18 percent? $3.0 1 $3.5 5 $3.8 9 $4.2 7 $4.8 8 QUESTION 10 Blackwell Ink is losing significant market share and thus its managers have decided to decrease the firm's annual dividend. The last annual dividend was $0.90 a share but all future dividends will be decreased by 5 percent annually. What is a share of this stock worth today at a required return of 15 percent? $4.0 7 $4.2 8 $4.4 9 $4.7 2 $4.9 5 QUESTION 11 Business Services, Inc. is expected to pay its first annual dividend of $0.80 per share three years from now. Starting in year six, the company is expected to start increasing the dividend by 2 percent per year. What is the value of this stock today at a required return of 12 percent? $6.1 6 $6.4 7 $6.6 3 $7.2 2 $7.4 7 QUESTION 12 The Border Crossing just paid an annual dividend of $4.20 per share and is expected to pay annual dividends of $4.40 and $4.50 per share the next two years, respectively. After that, the firm expects to maintain a constant dividend growth rate of 2 percent per year. What is the value of this stock today if the required return is 14 percent? $30. 04 $32. 18 $33. 33 $35. 80 $36. 75 QUESTION 13 The Market Place recently announced that it will pay its first annual dividend two years from today. The first dividend will be $0.50 a share with that amount doubling each year for the following two years. After that, the dividend is expected to increase by 4 percent annually. What is the value of this stock today if the required return is 15 percent? $11. 68 $12. 47 $12. 99 $14. 02 $14. 94 QUESTION 14 Plastics, Inc. will pay an annual dividend of $1.85 next year. The company just announced that future dividends will be increasing by 2.25 percent annually. How much are you willing to pay for one share of this stock if you require a 16 percent return? $13. 45 $13. 61 $13. 76 $14. 02 $14. 45 QUESTION 15 Atlas Home Supply has paid a constant annual dividend of $2.40 a share for the past 15 years. Yesterday, the firm announced the dividend will increase next year by 10 percent and will stay at the level through year three, after which time the dividends will increase by 2 percent annually. The required return on this stock is 12 percent. What is the current value per share? $25. 51 $26. 08 $24. 57 $26. 02 $26. 84
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started