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You own the following portfolio of stocks. What is the portfolio weight of Stock C? Stock Number of Shares A 120 B 790 450 D

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You own the following portfolio of stocks. What is the portfolio weight of Stock C? Stock Number of Shares A 120 B 790 450 D 260 Price per Share $ 36 $ 32 $ 56 $ 55 8 Multiple Choice .5740 0.0625 0 2069 .3647 .3658 New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $5.45 per share exactly 6 years from today. After that, the dividends are expected to grow at 3.6 percent forever. If the required return is 12.4 percent, what is the price of the stock today? Multiple Choice $30.71 $51.89 56193 53452 $40.27 Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 30 percent for the next three years, with the growth rate falling off to a constant 6.5 percent thereafter. If the required return is 13 percent and the company just paid a dividend of $3.00, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 10 years because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $16.00 per share 11 years from today and will increase the dividend by 5.25 percent per year thereafter. If the required return on this stock is 13.25 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current share price

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