Stocks

1. A stock sells for $13.67 a share and has a required return of 14 percent. Dividends are paid annually and increase at a constant 3 percent per year. What is the amount of the last dividend paid?

2. DL Insulation has paid annual dividends of $1.40 in 2010. In 2018, the company paid $2.78 per share. What is the geometric average dividend growth rate for this period?

3. Over the past 4 years, a local firm has paid annual dividends of $1.62, $1.65, $1.70, and $1.73. What is the arithmetic average dividend growth rate?

4. Roy's Markets has net income of $164,000. The firm has 200,000 shares of common stock outstanding. The dividend for this year is $0.61 per share. What is the retention ratio?