Q1:

Q2:

Coolibah Holdings is expected to pay dividends of $1.40 every six months for the next three years. If the current price of Coolibah stock is $21.90, and Coolibah's equity cost of capital is 14%, what price would you expect Coolibah's stock to sell for at the end of three years?

Q3:

Chittenden Enterprises has 644 million shares outstanding. It expects earnings at the end of the year to be $960 million. The firm's equity cost of capital is 9%. Chittenden pays out 30% of its earnings in total: 20% paid out as dividends and 10% used to repurchase shares. IfChittenden's earnings are expected to grow at a constant 3% per year, what is Chittenden's share price?

Q4:

Luther Industries has a dividend yield of 3.5% and a cost of equity capital of 10%. Luther Industries' dividends are expected to grow at a constant rate indefinitely. The growth rate of Luther's dividends are closest to:

Which of the following best describes a bond rated by Standard & Poor's and Moody as B? O A. neither highly protected nor poorly secured O B. considered to be medium grade obligations O C. generally lacks the characteristics of a desirable investment O D. judged to be high quality by all standards