1. Northern Gas recently paid a $2.90 annual dividend on its common stock. This dividend increases at an average rate of 4.8 percent per year indefinitely. The stock is currently selling for $26.91 a share. What is the dividend yield?
2. The Denver company is expected to pay the first dividend of $0.50 at the end of year 2. The dividend should grow at a rate of 7 percent per year for years 3 to 5. The stock can be sold for $31 at the end of year 5. If the required rate of return is 12 percent, what is the current value of this stock?
3. Thomas Brothers is expected to pay a $1.20 per share dividend at the end of the first year. The dividend is expected to grow at a constant rate of 4 percent per year indefinitely. The required rate of return on this stock is 15 percent. What is the current value of the companys stock?
4. Home Canning Products common stock sells for $18.00 a share and has a market rate of return of 14.2 percent. The company just paid an annual dividend of $0.65 per share. What is the dividend growth rate?