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QUESTION 1

1. "Company E has a dividend yield of 6% and a cost of equity capital of 10%. Company E's dividends are expected to grow at a constant rate indefinitely. What is the growth rate of the dividends of Company E's stock? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer."

QUESTION 2

1. "Company F will have earnings per share of $6 this year and expect that they will pay out $4 of these earnings to shareholders in the form of a dividend. Company F's return on new investments is 10% and their equity cost of capital is 7.5%. The expected growth rate for Company F's dividends is ________. Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer."

   QUESTION 3

2. "Company F will have earnings per share of $6 this year and expect that they will pay out $4 of these earnings to shareholders in the form of a dividend. Company F's return on new investments is 10% and their equity cost of capital is 7.5%. The value of Company F's stock is ________. Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."