1. The preferred stock of ABC Corp. had a par value of $100 and a dividend yield of 7% when you purchased it. The required return on similar assets is 8%. The stock is not trading for $90. Would you still want to own the stock? Explain your answer. (4 points)
2. ABC pays an annual dividend of $0.83. You purchased the stock at $37.50. What is the dividend yield? (4 points)
3. GCC just paid a dividend today of $0.75 (this is D0). It expects to continue to grow at 6% per year indefinitely. What is the price of the stock if you have a 7% required return? (4 points)
4. BBC earned $12 a share last year and paid a dividend of $4 a share. Next year BBC expects to earn $14 and continue with the same dividend payout ratio. Assume that you expect to sell the stock for $140 a year from now. If you require 10% on this stock, how much would you be willing to pay for it? (6 points)
5. You want to purchase either Company A or Company B. Use the chart below to answer the following questions. (10 points)
   1. Calculate the PEG ratio for each company.
   2. Which company would you purchase?

	Company A	Company B
Stock Price	$50	$35
Net Income This Year	$22,000,000	$17,000,000
Expected Net Income Next Year	$26,400,000	$19,040,000
Shares Outstanding	$10,000,000	$7,000,000

6. You purchased 500 shares of Exxon stock on November 1, 2019 at $73.01 a share. The dividend yield at the time you purchased the stock was 4.90% (assume the dividend remained the same for the year). You sold it today at $33.36. What is your total dollar profit/loss and percent return (break it down into return on dividend, return on stock, and total)? (8 points)

Do not plagiarize, please