Question 16. 1 pts

XYZ Corporation will pay an annual dividend of $1.37 a share next year. The firm expects to increase this dividend by 8 percent per year the following four years and then decrease the dividend growth to 2 percent annually thereafter. Which one of the following is the correct computation of the dividend for Year 7?

Group of answer choices

A. ($1.37) (1.08 4) (1.02 3)

B. ($1.37) (1.08 4) (1.02 2)

C. ($1.37) (1.08)^4 (1.02)^22

D. ($1.37) (1.08)^4 (1.02)^3

E. ($1.37) (1.08)^4 (1.02)^4

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Question 17. 1 pts

The required return on a stock is equal to which one of the following if the dividend on the stock decreases by a constant percent per year?

Group of answer choices

A. (P0/D1) g

B. (D1/P0) / g

C. Dividend yield + Capital gains yield

D. Dividend yield Capital gains yield

E. Dividend yield Capital gains yield

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Question 181 pts

Shares Corporation is expected to pay annual dividends of $1.34 and $1.45 at the end of the next two years, respectively. After that, the company expects to pay a constant dividend of $1.50 a share. What is the value of this stock at a required return of 15.1 percent?

Group of answer choices

A. $7.77

B. $10.25

C. $9.76

D. $12.78

E. $9.93

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Question 19. 1 pts

ABC Company charges its customers .75 percent interest per month. The customers are actually paying what rate of interest?

Group of answer choices

A. 9.00 percent

B. 9.38 percent

C. 10.20 percent

D. 10.26 percent

E. 10.69 percent