QUESTION 1 17 points Save Answer What would you pay for a share of ABC Corporation stock today if the dividend oneyear from now will be $3 per share and you can sell the stock (after you receive thedividend) for $90 a year from today. Assume your required return is 15%. O a. $78.26 O b. $80.87 O c. $82.56 O d. $90.00 Oe. $98.12 QUESTION 2 17 points Save Answer The dividend on Simple Motors common stock will be $3 in 1 year, $4.25 in 2 years, and $6.00 in 3 years. You can sell the stock, after you receive the dividend, for $100 atthe end of 3 years. If you require a 12% return on your investment, how much wouldyou be willing to pay for a share of this stock today? O A. $75.45 O B. $77.24 O C. $81.52 O D. $85.66 O E. $90.01QUESTION 3 17 points Save Answer What would you pay today for a stock that is expected to make a $2 dividend in one year if the expected dividend growth rate is 5% and you require a 12% return on yourinvestment? OA. $28.57 O B. $29.33 O C. $31,43 O D. $43.14 O E. $53.40 QUESTION 4 17 points Save Answer ABC Corporation's common stock dividend yield is 3.61%, it just paid a dividend of$2.75, and is expected to pay a dividend of $2.89 one year from now. Dividends are expected to grow at a constant rate indefinitely. What is the required rate of return on ABC stock? O A. 7.3% O B. 8,7% O C.9,5% O D. 10.6% O E. 11.2%QUESTION 5 17 points Save Answer McGonigal's Meats, Inc. currently pays no dividends. The firm plans to begin paying dividends at the end of 3 years from today. The first dividend will be $1.50 and dividends will grow at 6% per year thereafter. Given a required return of 14%, what would you pay for the stock today? O a. $13.42 O b. $14,42 O c. $16.37 Od. $17.61 Oe. $21.37 QUESTION 6 17 points Save Answer Suppose Pale Hose, Inc. has just paid a dividend of $1.80 per share. Sales and profits for Pale Hose are expected to grow at a rate of 8% per year. Its dividend is expected to grow by the same amount. If the required return is 14%, what is the value of a share of Pale Hose? O $18.00 $25.20 $27.80 $30.60 O $32.40