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  3. 1. if the expected rate of return is 15.5% and div

1. If the expected rate of return is 15.5% and dividend yield is 6.1. What...

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Finance

1. If the expected rate of return is 15.5% and dividend yield is 6.1. What is the capital gain yield?

a.6.1%

b.15.5%

c.9.4%

d. 21.6%

2. In a stream of past dividends, the initial dividend is $1.25 and the most recent dividend is $1.80. The number of years between these two dividends (n) is 7 years. What is the average growth rate during this seven-year period?

a.5.35%

b.4.35%

c.7.35%

d.6.35%

6.35%

3. Endicott Enterprises Inc. has issued 30-year semiannual coupon bonds with a face value of $1,000. If the annual coupon rate is 14% and the current yield to maturity is 15%, what is the firm's current price per bond?

a.$1,000.00

b.$466.79

c.$934.34

d.$934.20

4. If the price of a stock is $78.60 in fifteen year from now. What is its price in today's dollars if you desire a rate of return of 12%?

a.$6.55

b.$9.43

c.$14.36

d.$15.00

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