PART I

Winslow Brothers common stock sells for $36.60 a share and pays an annual dividend that increases by 1.8 percent annually. The market rate of return on this stock is 14.7 percent. What is the amount of the last dividend paid?

A.$5.29

B.$4.64

C.$4.84

D.$4.56

E.$5.37

PART II

Ernst Electrical increases its annual dividend by 1.8 percent annually. The stock commands a market rate of return of 18 percent and sells for $19.07 a share. What is the expected amount of the next dividend?

A.$3.03

B.$3.07

C.$3.18

D.$3.21

E.$3.09

PART III

The Olde Mill just paid an annual dividend of $.38 a share and plans on decreasing this amount by 1 percent annually. What is the expected dividend for Year 6?

A.$.3542

B.$.3602

C.$.3636

D.$.3578

E.$.3584