od a. c. 9. 10. 11. HappySounds, Inc. is expected to pay a dividend of 85 per share at the end of year one and these dividends are expected to grow at a constant rate of 9% forever. If the required rate of return on the stock is 16%, what is the value of the stock today? $28.57 b. $44.44 $71.43 d. $109.05 A firm has an expected dividend per year (forever) of $9.35 per share, a zero growth rate of dividends, and a required return of 8 percent. The value of a share of the firm's common stock is a $124.67 b. $116.88 C $105.31 d. $92.55 A $1,000 par, 12% coupon rate bond with a remaining life of 9 years pays interest semiannually. What is this bond's approximate current market value if the going rate of interest for similar bonds is 10%? $ 879.32 b. $ 939.50 c. $1,032.04 d. $1,062.81 e. $1,116.90 New Sound Corp, is expected to pay a dividend in year 1 of $1.20, a dividend in year 2 of $1.50, and a dividend in year 3 of $2.00. After year 3, dividends are expected to grow at the constant rate of 10% per year. An appropriate required return for the stock is 14%. The stock should be worth today $33.00 b. $40.68 $55.00 d. $66.00 The value of a share of stock: a Increases as the dividend growth rate decreases b. Increases as the required rate of return decreases c. Increases as the required rate of return increases. d. Both A and B. I Steve the investor buys a share of Organic Chips Corp. common stock for $39 and sells it for $29 in one year. The share paid a dividend during the period of $4.00. What is the rate of return on this stock? 35.90% b. 15.38% c. -15.38% d. -35.90% Space Trips, Inc, common stock has just paid a dividend of $ 2.40. If the expected constant growth rate for this stock is 17 percent, and if investors require a 19.5 percent rate of return), what is the price of the stock? $11.33 $12.47 S112.40 d. $143.33 S157.50 a C. 12 13. 14. a b e