What is the price today for a stock that is expected to make a $1.50 dividend in one year if the expected dividend growth rate is 7% and you require a 10.5% return on your investment? Select one:

a. $21.43 b. $15.00 c. $54.55 d. $42.86 19)

What is the yield to maturity?

Select one: a. 6.03% b. 5.23% c. 4.68% d. 5.91% 20)

What is the yield to call?

Select one: a. 4.00% b. 7.80% c. 2.86% d. 3.92%

Info 1:

You have $57,000 in an account earning 12% interest. You make $10,000 withdrawals at the end of each year. How long will you be able to make these withdrawals?

Select one:

a. 12.3

b. 10.2

c. 9.7

d. 11.5

Info 2:

Use for the following TWO problems:

A bond has a coupon rate of 6.3%, pays annual coupons, has 13 years to maturity and sells for $1,024. It is callable in 4 years at a price of $1,100.

Info 3:

Use for the next FOUR problems

Steelers Wheels, Inc. anticipates addition to retained earnings of $19,200 this year. The company can raise debt at a 10% interest rate. The next dividend is expected to be $1.00 and the stock is selling for $10.26 a share with expected growth rate in dividends of 5%. Flotation cost on new common stock is 10%. Steelers Wheels has a capital structure of 50% debt, 50% equity and a tax rate of 40%.