Kira is looking at a stock that is expected to pay a dividends of $2.10 next year and $2.25 the year after. If Kira believes that the market value of the stock will be $150 at the end of year 2, how much is she willing to pay for the stock today if her required return is 12%?

Chris purchased a stock for $40.00 that recently paid a dividend of $1.00. If Chris believes that the dividends on the stock will increase by 15% annually, what is his required return on the stock?

Bill is interested in purchasing a stock that recently paid a dividend of $0.40. Bill expects the divided to grow at a rate of 20% for two years and then at 10% into perpetuity. If Bill's required return is 15%, how much will he be willing to pay for the stock?

Sherry purchased a stock for $21.00 per share. One year later, the stock is now selling for $16.00 per share. Sherry received a $4.00 per share dividend on the stock last month. What is Sherry's total return on her stock investment? What was the income portion and what was the capital gain / loss portion of the total return?

You bought a stock one year ago for $50.00. Today the stock is worth $52.50. In addition, you received a $3.00 in dividends on the stock. What were your dividend and capital gains yields on the stock?