QUESTION 16

Zephyr Electricals is a company with no growth. The last dividend was $4.50 and it expects no change in future dividends. What is the current price of the company's stock if the required rate of return is 9 percent?

QUESTION 17

Johnson Corporation JUST PAID a dividend of $4.63. The expected growth rate on dividends is 8 percent. What is the current price of this stock if the required rate of return is 10 percent?

QUESTION 18

Grant, Inc. is a fast growing company and its dividend is expected to grow at a rate of 10 percent for the next two years. It will then settle to a constant growth rate of 5 percent. If the last dividend was $6.20 and the required rate of return is 15 percent, what is the current price of the stock

QUESTION 19

Ajax Company has issued perpetual preferred stock with an annual dividend of $4.80. What is the value of this preferred stock if the required rate of return is 8 percent?

QUESTION 20

A company is growing at a constant rate of 10 percent. Last week it paid a dividend of $2.83. If the required rate of return is 15 percent, what is the price of the stock five years from now?