PART I

JJ Companies will pay an annual dividend of $4.20 a share on its common stock next year. Last week, the company paid a dividend of $4.00 a share. The company adheres to a constant rate of growth dividend policy. What will one share of this stock be worth 8 years from now if the applicable discount rate is 14 percent?

A.$68.95 B.

$81.44

C.$74.21

D.$71.16

E.$77.09

PART II

Wilton's Market just announced its next annual dividend will be $1.62 a share with future dividends increasing by 2.2 percent annually. How much will one share of this stock be worth 6 years from now if the required return is 12.5 percent?

A.$16.76

B.$17.92

C.$18.14

D.$18.32

E.$15.79

PART III

XanEx is a new firm that just paid an annual dividend of $1 a share. The firm plans to increase its dividend by 10 percent a year for the next 4 years and then decrease the growth rate to 2 percent annually. If the required rate of return is 18.25 percent, what is one share of this stock worth today?

A. $8.05

B. $8.19

C. $11.05

D. $11.19

E. $14.81