$\%$

The stock price of the New York Jets is currently trading at $$57$ per share. Investors require a $12\%$

rate of return on similar stocks. If the New York Jets plan to pay a dividend of $$3\mathrm{.}45$ next year, what

growth rate is expected for the company's stock price?

a$.5\mathrm{.}95\%$

b$.9\mathrm{.}08\%$

c$.9\mathrm{.}80\%$

d$.5\mathrm{.}59\%$

e$.7\mathrm{.}77\%$

The New York Yankees just paid an annual dividend of $$3\mathrm{.}15$ per share on its privately owned stock.

The dividends are expected to grow at a constant rate of $3\mathrm{.}75\%$ per year, indefinitely. If investors require

a $15\%$ return on this stock, what will be the price in $16$ years?

a$.$ $$50\mathrm{.}46$

b$.$ $$50\mathrm{.}64$

c$.$ $$70\mathrm{.}89$

d$.$ $$70\mathrm{.}98$

e$.$ $$19\mathrm{.}99$

A stock has a market price of $$87\mathrm{.}50$ and pays a $$5\mathrm{.}55$ annual dividend. What is the dividend yield?

a$.5\mathrm{.}21\%$

$($b$)6\mathrm{.}34\%$

c$.6\mathrm{.}43\%$

d$.5\mathrm{.}12\%$

e$.5\mathrm{.}95\%$

The Derek Jeter marketing company plans to pay an annual dividend as follows: $$1\mathrm{.}55$ per share for

next year, $$1\mathrm{.}25$ per share for the following year $($year $2),$ $$1\mathrm{.}15$ per share the year after $($year $3)$ and $$1\mathrm{.}00$

in the final year $($year $4)$ and then will cease paying dividends altogether. How much is one share of this

stock worth to you today if you require a $13\mathrm{.}50\%$ rate of return?

a$.$ $$2\mathrm{.}38$

b$.$ $$3\mathrm{.}37$

c$.$ $$3\mathrm{.}73$

d$.$ $$2\mathrm{.}83$

e$.$ $$0\mathrm{.}95$