1. What is the expected dividend to be paid in 3 years if yesterday's dividend was $6.00, dividends are expected to grow at a constant 6% annual rate, and the firm has a 10% expected return?

A. $6.75

B. $7.15

C. $7.80

D. $9.37

2. What dividend yield would be reported in the financial press for a stock that currently pays a $1 dividend per quarter and the most recent stock price was $40?

A. 2.5%

B. 4.0%

C. 10.0%

D. 15.0%

3. If the dividend yield for year 1 is expected to be 5% based on the current price of $25, what will the year 4 dividend be if dividends grow at a constant 6%?

A. $1.33

B. $1.49

C. $1.58

D. $1.67

4. What rate of return is expected from a stock that sells for $30 per share, pays $1.50 annually in dividends, and is expected to sell for $33 per share in one year?

A. 5.00%

B. 10.00%

C. 14.09%

D. 15.00%

5. A stock paying $5 in annual dividends sells now for $80 and has an expected return of 14%. What might investors expect to pay for the stock 1 year from now?

A. $82.20

B. $86.20

C. $87.20

D. $91.20