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1. The expected dividend yield for a stock is defined as the most recent dividend, which has already been paid, over the actual market price of the stock. T/F

2. A publicly owned corporation is a company whose shares are held by the investing public, which don't include such institutional investors as banks. T/F

3. Classified stock differentiates different classes of common stock, and using it is one way companies can meet special needs such as when owners of a start-up firm need additional equity capital but don't want to relinquish voting control. T/F

4. If two firms have the same current dividend and the same expected dividend growth rate, their stocks must sell at the same current price or else the market will not be in equilibrium. T/F

5. Stock X has a required return of 12% and a dividend yield of 5%, and its dividend is expected to grow at a constant rate forever.Stock Y has a required return of 10%, a dividend yield of 3%, and its dividend is expected to grow at a constant rate forever.Both stocks currently sell for $25 per share.Which of the following statements is CORRECT?

a. Stock Y pays a higher dividend per share than Stock X.

b. Stock X pays a higher dividend per share than Stock Y.

c. Stock Y has a lower expected growth rate than Stock X.

d. Stock Y has the higher expected capital gains yield.

6. A stock has just paid its dividend $1.0.The required rate of return is r_s = 8.0%, and the expected constant growth rate is g = 3.0%.What is the current stock price?

7. If D₀ = $2.25, g (which is constant) = 3.5%, and P₀ = $50, what is the stock's expected dividend yield for the coming year?

8. If D₀ = $3.0, g (which is constant) = 5.0%, and P₀ = $73.5, what is the stock's expected total return for the coming year?

9. The MLS Tech has just paid a dividend of $2.0, and that dividend is expected to grow at a constant rate of 4.0% per year in the future.The company's beta is 1.2, the market risk premium is 5.0%, and the risk-free rate is 3.0%.What is the company's current stock price?

10. A stock currently sells for $35.55 per share.The stock's dividend is projected to increase at a constant rate of 5.0% per year.The required rate of return on the stock r_s is 9.50%.What is the expected price 3 years from today?