QUESTION 1:

If D₁ = $4.26, g (which is constant) = 2%, and P₀ = $67.54, what is the stock's expected dividend yield for the coming year?

QUESTION 2

ABC is expected to pay a dividend of $4.5 per share at the end of the year.  The stock sells for $93 per share, and its required rate of return is 10.9%.  The dividend is expected to grow at some constant rate, g, forever.  What is the growth rate (i.e. solve for g)?

QUESTION 3

ABC Inc., is expected to pay an annual dividend of $5.2 per share next year. The required return is 18 percent and the growth rate is 6.9 percent. What is the expected value of this stock five years from now?

QUESTION 4

The common stock of Connor, Inc., is selling for $31 a share and has a dividend yield of 2.2 percent. What is the dividend amount?

QUESTION 5

ABC's last dividend was $3.3.  The dividend growth rate is expected to be constant at 25% for 3 years, after which dividends are expected to grow at a rate of 7% forever.  If the firm's required return (r_s) is 13%, what is its current stock price (i.e. solve for Po)?

QUESTION 6

If D₁ = $3.2, g (which is constant) = 2.6%, and P₀ = $60.1, what is the stock's expected total return for the coming year?

QUESTION 7

The common stock of Wetmore Industries is valued at $21.2 a share. The company increases their dividend by 6.2 percent annually and expects their next dividend to be $1.8. What is the required rate of return on this stock?

QUESTION 8

ABC Enterprises' stock is expected to pay a dividend of $1.8 per share.  The dividend is projected to increase at a constant rate of 8.7% per year.  The required rate of return on the stock is 19.5%.  What is the stock's expected price 3 years from today (i.e. solve for P3)?

QUESTION 9

ABC Enterprises' stock is currently selling for $39 per share.  The dividend is projected to increase at a constant rate of 3.7% per year.  The required rate of return on the stock is 12%.  What is the stock's expected price 5 years from today (i.e. solve for P5)?

QUESTION 10

A stock is expected to pay a dividend of $0.5 at the end of the year.  The required rate of return is r_s = 19.7%, and the expected constant growth rate is g = 6%.  What is the stock's current price?

QUESTION 11

If last dividend = $4.8, g = 4.9%, and P₀ = $77.8, what is the stock's expected total return for the coming year?

QUESTION 12

ABC's last dividend paid was $1.6, its required return is 19.3%, its growth rate is 3.6%, and its growth rate is expected to be constant in the future.  What is Sorenson's expected stock price in 7 years, i.e., what is P7?

QUESTION 13

ABC's stock has a required rate of return of 19.8%, and it sells for $73 per share.  The dividend is expected to grow at a constant rate of 5.4% per year.  What is the expected year-end dividend, D₁?

QUESTION 14

ABC Company's last dividend was $4.  The dividend growth rate is expected to be constant at 17% for 2 years, after which dividends are expected to grow at a rate of 7% forever.  The firm's required return (r_s) is 16%.  What is its current stock price (i.e. solve for Po)?

QUESTION 15

A stock just paid a dividend of D₀ = $1.3.  The required rate of return is r_s = 13.9%, and the constant growth rate is g = 5.4%.  What is the current stock price?

QUESTION 16

ABC just paid a dividend of D₀ = $3.1.  Analysts expect the company's dividend to grow by 33% this year, by 25% in Year 2, and at a constant rate of 5% in Year 3 and thereafter.  The required return on this stock is 17%.  What is the best estimate of the stock's current market value?