Question

Weisbro and Sons common stock sells for $21 a share and pays an annual dividend that increases by 5 percent annually. The rate of return on this stock is 9 percent. What is the amount of the last dividend paid?

Answer

0.77

0.8

0.84

0.87

0.88

18.Multiple Choice: The common stock of Energy Saver pays...

Points:3.33

Question

The common stock of Energy Saver pays an annual dividend that is expected to increase by 4 percent annually. The stock commands a market rate of return of 12 percent and sells for $58.25 a share. What is the expected amount of the next dividend to be paid?

Answer

4.87

5.02

5.1

4.66

4.33

19.Multiple Choice: The Reading Co. has adopted a policy ...

Points:3.33

Question

The Reading Co. has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 3 percent annually. The last dividend it paid (T = 0) was $.90 a share. What will the company's dividend be six years from now?

Answer

0.9

0.93

1.04

1.07

1.11

20.Multiple Choice: You have decided to purchase shares o...

Points:3.33

Question

You have decided to purchase shares of GHC but need an expected 12 percent rate of return to compensate for the perceived risk of such ownership. What is the maximum price you should pay per share if the company pays a constant $2.70 annual dividend per share?

Answer

23.04

22.5

32.67

34.29

21.59

21.Multiple Choice: S&P Enterprises will pay an annual di...

Points:3.33

Question

S&P Enterprises will pay an annual dividend of $2.08 a share on its common stock next year. Last week, the company paid a dividend of $2.00 a share. The company adheres to a constant rate of growth dividend policy. What will one share of S&P common stock be worth ten years from now if the applicable discount rate is 8 percent?

Answer

71.16

74.01

76.97

80.05

83.25

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