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9. The stock of MTY Golf World currently sells for $133.75 per share. The firm...

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Finance

9. The stock of MTY Golf World currently sells for $133.75 per share. The firm has a constant dividend growth rate of 7% and just paid a dividend of $6.21. If the required rate of return is 12%, what will the stock sell for one year from now? A. $127.06 B. $142.20 C. $143.11 D. $149.80 E. $152.78

10. Boomer Products, Inc. manufactures "no-inhale" cigarettes. As its target customers age and pass on, sales of the product are expected to decline. Thus, demographics suggest that earnings and dividends will decline at a rate of 4% annually forever. The firm just paid a dividend of $2.50; given a required return of 12%, the stock should today should sell for: A. $10.25 B. $12.50 C. $15.00 D. $16.25 E. $32.50

11. If a company has a current stock price of $25, an EPS of $2.75/share; EPS growth rate of 15% and the investors rate of return is 20%, calculate the cash cow price. A. $13.75 B. $14.50 C. $15.25 D. $16.00 E. $16.75

12. Last week, N&M Railroad paid its annual dividend of $1.50 per share. The company has been reducing the dividends by 10% each year. How much are you willing to pay to purchase stock in this company if your required rate of return is 15%? A. $5.40 B. $6.00 C. $15.60 D. $27.00 E. $30.30

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