You want to invest in a stock that is expected to pay the following dividends of $$1\mathrm{.}50,$$$2\mathrm{.}00,$$$2\mathrm{.}50,$ and $$3\mathrm{.}00$ over the next four years, respectively. At the ABC Company just paid a dividend of $$1\mathrm{.}00$ per share. If dividends are expected to grow at an annual rate of $2\mathrm{.}50\%$ from here on out, the risk$-$free rate is $3\%,$

this stock is one and one$-$half times as risky as the market on average, and the expected return on the market is $7\%,$ according to CAPM, what is the required

rate of return on this stock and what would its PPS be today?

LATEST DIVIDEND PER SHARE

EXPECTED CONSTANT DIVIDEND GROWTH

RISK$-$FREE RATE

RISK VERSUS AVERAGE MARKET RISK

EXPECTED RETURN ON MARKET

MARKET RISK PREMIUM

REQUIRED RATE OF RETURN

PPS

ABC Company just paid a dividend of $$3\mathrm{.}00$ per share. If dividends are expected to grow at an annual rate of $4\%$ from here on out, the risk$-$free rate is $2\%,$

ABC's stock is only three$-$fourth as risky as the market on average and the market risk premium is $7\%,$ according to CAPM, what is the required rate of return on

this stock and what would its PPS be today?

LATEST DIVIDEND PER SHARE

EXPECTED CONSTANT DIVIDEND GROWTH

RISK$-$FREE RATE

RISK VERSUS AVERAGE MARKET RISK

EXPECTED RETURN ON MARKET

MARKET RISK PREMIUM

REQUIRED RATE OF RETURN

PPS $25.$ ABC Company plans to pay its first preferred stock dividend of $$2\mathrm{.}00$ in $6$ years. If investors require a return of $9\%$ per year, what would be the value of ABC $\text{'}$s

preferred stock in the year prior to its first dividend and its value TODAY?

DIVIDEND PER SHARE

BEGINNING YEAR

REQUIRED RATE OF RETURN

PRICE IN YEAR PRIOR TO BEGINNING YEAR

PRICE TODAY

A firm's stock price dropped to $$25$ overnight. Given its dividend growth rate of $4\%$ and the last annual dividend of $$1\mathrm{.}05,$ what is the implied required rate of

return necessary to justify the new lower market price?

PRICE

DIVIDEND GROWTH RATE

LAST ANNUAL DIVIDEND

IMPLIED REQUIRED RATE OF RETURN

end of the $4$ years, you expect to be able to sell the stock for $$35\mathrm{.}00.$ If you want to earn an annual rate of return of $7\%,$ what is the most that you should pay

for this stock today?

ABC Company just paid a dividend of $$3\mathrm{.}50$ per share. If your required rate of return is $12\%,$ and you expect dividends to grow at an annual rate of $4\%,$

what is the most that you should pay for a share of ABC stock today?

LATEST DIVIDEND PER SHARE

EXPECTED CONSTANT DIVIDEND GROWTH

REQUIRED RATE OF RETURN

PRICE PER SHARE TODAY $($PPS$)$

$($please show excel formulas$)$