Question 1) Nynet, Inc., paid a dividend of $4.37 last year. The company's management does not expect to increase its dividend in the foreseeable future. If the required rate of return is 16.5 percent, what is the current value of the stock? Current value $_____

Question 2) The current stock price of Largent, Inc., is $43.19. If the required rate of return is 23 percent, what is the dividend paid by this firm if the dividend is not expected to grow in the future? Dividend Paid $____

Question 3) Moriband Corp. paid a dividend of $2.75 yesterday. The companys dividend is expected to grow at a steady rate of 5 percent for the foreseeable future. If investors in stocks of companies like Moriband require a rate of return of 18.5 percent, what should be the market price of Moriband stock?

Market price $____

Question 4) Nyeil, Inc., is a consumer products firm that is growing at a constant rate of 5.5 percent. The firms last dividend was $3.36. If the required rate of return is 17.0 percent, what is the market value of this stock if dividends grow at the same rate as the firm? Market value $____

Question 5) Proxicam, Inc., is expected to grow at a constant rate of 9.25 percent. If the companys next dividend, which will be paid in a year, is $1.26 and its current stock price is $22.35, what is the required rate of return on this stock? Rate of return ____%

Question 6) Each quarter, Sirkota, Inc., pays a dividend on its perpetual preferred stock. Today the stock is selling at $63.72. If the required rate of return for such stocks is 16.5 percent, what is the quarterly dividend paid by this Sirkota? Quarterly dividend paid $____

Question 7) Kay Williams is interested in purchasing the common stock of Reckers, Inc., which is currently priced at $42.28. The company is expected to pay a dividend of $2.58 next year and to increase its dividend at a constant rate of 7.75 percent.

What should the market value of the stock be if the required rate of return is 14 percent? ___

Is this a good buy?

Question 8) You own shares of Old World DVD Company and are interested in selling them. With so many people downloading music these days, sales, profits, and dividends at Old World have been declining 8 percent per year. The firm just paid a dividend of $1.60 per share. The required rate of return for a stock this risky is 15 percent. If dividends are expected to decline at 8 percent per year, what is a share of the stock worth today? Worth of share of stock ____

Question 9) X-Centric Energy Company has issued perpetual preferred stock with a stated (par) value of $100 and a dividend of 4.0 percent. If the required rate of return is 9.00 percent, what is the stock's current market price? Current market price _____

Question 10) Staggert Corp. will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years. Thereafter, management expects the dividend growth rate to be constant at 6.75 percent. If the required rate of return is 18.0 percent, what is the current value of the stock? Current value ____

Question 11) Burnes, Inc., is a mature firm that is growing at a constant rate of 6.65 percent per year. The last dividend that the firm paid was $1.30 per share. If dividends are expected to grow at the same rate as the firm and the required rate of return on Burness stock is 10 percent, what is the market value of the companys stock? Market value of the companys stock ____