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A stock is expected to maintain a constant dividend growth rate of 4.7 percent indefinitely. If the stock has a dividend yield of 6 percent, what is the required return on the stock?

Group of answer choices

A) 8.83%

B) 9.59%

C) 9.99%

D) 10.09%

E) 10.7%

Question 2

A stock just paid a dividend of $5.69 and is expected to maintain a constant dividend growth rate of 4.2 percent indefinitely. If the current stock price is $85, what is the required return on the stock?

Group of answer choices

A) 10.89%

B) 10.43%

C) 9.53%

D) 10.35%

E) 11.18%

Question 3

Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $2.00 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a return of 13.70 percent on your equity investments?

Group of answer choices

A) $11.70

B) $27.40

C) $15.70

D) $14.60

E) $6.85

Question 4

Question 41 pts

Santa Klaus Toys just paid a dividend of $2.10 per share. The required return is 11.5 percent and the perpetual dividend growth rate is 3.0 percent. What price should this stock sell for five years from today?

Group of answer choices

A) $29.50

B) $24.71

C) $28.64

D) $30.39

E) $27.81

Question 5

Mariota Corp. just paid a dividend of $4.00 per share on its stock. The dividend growth rate is expected to be 3.5 forever and investors require a return of 13 percent on this stock. What will the stock price be in 8 years?

Group of answer choices

A) $55.44

B) $57.39

C) $50.78

D) $41.94

E) $21.59

Question 6

Flex Co. just paid total dividends of $575,000 and reported additions to retained earnings of $1,725,000. The company has 515,000 shares of stock outstanding and a benchmark PE of 15.30 times. What stock price would you consider appropriate?

Group of answer choices

A) $61.50

B) $51.25

C) $64.91

D) $17.08

E) $68.33

Question 7

Michael's, Inc., just paid $1.95 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 4.3 percent. If you require a rate of return of 8.5 percent, how much are you willing to pay today to purchase one share of the company's stock?

Group of answer choices

A) $50.38

B) 24.21

C) $15.89

D) $23.93

E) $48.43

Question 8

Stoneheart Group is expected to pay a dividend of $3.01 next year. The company's dividend growth rate is expected to be 4.7 percent indefinitely and investors require a return of 10.9 percent on the company's stock. What is the stock price?

Group of answer choices

A) $46.12

B) $50.83

C) $43.69

D) $27.61

E) $48.55

Question 9

You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.6 percent indefinitely. The company just paid a dividend of $3.71 and you feel that the required return on the stock is 12 percent. What is the price per share of the company's stock?

Group of answer choices

A) $43.47

B) $30.92

C) $44.17

D) $41.18

E) $45.76

Question 10

Symon's Suppers Co. has announced that it will pay a dividend of $4.37 per share one year from today. Additionally, the company expects to increase its dividend by 4.3 percent annually. The required return on the company's stock is 11.3 percent. What is the current share price?

Group of answer choices

A) $62.43

B) $58.60

C) $65.11

D) $59.31

E) $38.67

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