Martha's Vineyard recently paid a $3.60 annual dividend on its common stock. This dividend increases at an average rate of 4.5% per year. The stock is currently selling for $57.88 a share. What is the rate of return on the stock?

Bet'R Bilt Bikes just announced that their annual dividend for this coming year will be $1.42 a share and that all future dividends are expected to increase by 2.5% annually. What is the market rate of return if this stock is currently selling for $14.20 a share?

Shares of common stock of the Samson Co. offer an expected total return of 12%. The dividend is increasing at a constant 8% per year. The dividend yield must be:

Weisbro and Sons common stock sells for $21 a share and pays an annual dividend that increases by 5% annually. The market rate of return on this stock is 9%. What is the amount of the last dividend paid by Weisbro and Sons?

The common stock of Energizer's pays an annual dividend that is expected to increase by 10% annually. The stock commands a market rate of return of 12% and sells for $55.00 a share. What is the expected amount of the next dividend to be paid on Energizer's common stock?

The Reading Co. has adopted a policy of increasing the annual dividend on their common stock at a constant rate of 3.5% annually. The last dividend they paid was $0.95 a share. What will the company's dividend be in five years?

You have decided that you would like to own some shares of GH Corp. but need an expected 12.5% rate of return to compensate for the perceived risk of such ownership. What is the maximum you are willing to spend per share to buy GH stock if the company pays a constant $3.40 annual dividend per share?

Turnips and Parsley common stock sells for $31.65 a share at a market rate of return of 9.5%. The company just paid their annual dividend of $1.20. What is the rate of growth of their dividend?

Wilbert's Clothing Stores just paid a $1.25 annual dividend. The company has a policy whereby the dividend increases by 2% annually. You would like to purchase 100 shares of stock in this firm but realize that you will not have the funds to do so for another three years. If you desire a 12% rate of return, how much should you expect to pay for 100 shares when you can afford to buy this stock? Ignore trading costs.