1. A stock paying $5 in annual dividends sells now for $100 and has an expected return of 20%. What might investors expect to pay for the stock one year from now?

A) $182.00

B) $186.00

C) $115.00

D) $110.00

E) None of the above

2. What is the expected constant growth rate of dividends for a stock currently priced at $50, that is expected to pay a dividend of $5 next year, and has a required return of 20%?

A) 13%

B) 10%

C) 11%

D) 12%

E) none of the above

3. What is the plowback ratio for a stock with current price of $30, earnings of $5 per share next year, a discount rate of 20% , and a rate of return on equity of 25% ?  

A) 0.5

B) 0.2

C) 0.4

D) 0.1

E) None of the above