Q. No. 2 Max Marks 13 A. Define closely held stock and publicly held stock in a single line. B. Describe different types of stock market transactions in your own words. C. HLB's stock currently sells for PKR 25 a share. The stock just paid a dividend of PKR 1.25 a share. The dividend is expected to grow at a constant rate of 10 percent a year. What stock price is expected one year from now? What is the required rate of return on HLB's stock? D. Colgate Industries just paid a dividend of PKR 1.50 a share. The dividend is expected to grow 5% a year for the next 3 years and then 10% a year thereafter. What is the expected dividend per share for each of the next 5 years? E. Exclusive Industries is expanding rapidly, and it does not pay any dividends because it currently needs to retain all of its earnings. However, as an investor, you expect that the company to begin paying dividends, with the first dividend of PKR 1.00 coming 3 years from today. The dividend should grow rapidlyat a rate of 60% per year, during the years 4 and 5. After Year 5, the company should grow at a constant rate of 9% per year. If the required return on the stock is 15%, what is the value of the stock today