# A Stock’S Next Dividend Is Expected To Be $0.9.

Question 1A stock’s next dividend is expected to be $0. 9. The required rate of return on stock is 11. 3%, and the expected constant growth rate is 7. 6%. What is the stock’s current price?a. 19. 28b. 24. 32c. 8. 28d. 23. 67Question 2A stock is expected to pay a dividend of $0. 5 at the end of the year. The required rate of return is rs = 9. 6%, and the expected constant growth rate is g = 6. 1%. What is the stock’s current price?a. 4. 98b. 6. 92c. 11. 59d. 14. 29Question 3If last dividend = $4. 6, g = 3. 8%, and P0 = $77. 3, what is the stock’s expected total return for the coming year?a. 9. 98b. 5. 38c. 7. 37d. 4. 84Question 4The common stock of Connor, Inc. , is selling for $25 a share and has a dividend yield of 4 percent. What is the dividend amount?a. 7b. 2c. 3d. 1Question 5A stock just paid a dividend of $1. 7. The required rate of return is 9. 6%, and the constant growth rate is 4. 8%. What is the current stock price?a. 37. 12b. 64. 24c. 23. 96d. 15. 98Question 6The common stock of Wetmore Industries is valued at $60. 8 a share. The company increases their dividend by 3. 4 percent annually and expects their next dividend to be $4. 1. What is the required rate of return on this stock?a. 5. 91b. 8. 46c. 10. 14d. 15. 82Question 7ABC’s last dividend was $3. 4. The dividend growth rate is expected to be constant at 27% for 3 years, after which dividends are expected to grow at a rate of 7% forever. If the firm’s required return (rs) is 16%, what is its current stock price (i. e. solve for Po)?a. 47. 97b. 65. 31c. 37. 85d. 48. 91Question 8ABC’s stock has a required rate of return of 17. 2%, and it sells for $34 per share. The dividend is expected to grow at a constant rate of 7. 2% per year. What is the expected year-end dividend, D1?a. 1. 78b. 2. 74c. 3. 94d. 3. 40Question 9A stock just paid a dividend of D0 = $1. 1. The required rate of return is rs = 9. 2%, and the constant growth rate is g = 6%. What is the current stock price?a. 36. 44b. 18. 3c. 10. 89d. 9. 16Question 10ABC just paid a dividend of D0 = $0. 6. Analysts expect the company’s dividend to grow by 34% this year, by 24% in Year 2, and at a constant rate of 7% in Year 3 and thereafter. The required return on this stock is 15%. What is the best estimate of the stock’s current market value?a. 16. 86b. 11. 54c. 9. 87d. 8. 35