1) Find the price for a stock and make decision, given that the current dividend is [tex]$4.45 per share, the required return is 5.7%, and the growth rate in dividends is 3.3% per year. 2) Find the price for a stock and make investment decision given that the current dividend is $5.3 per share, the required return is 12.1%, and the growth rate in dividends is 7% per
year.
3) Find the price for a stock and make investment decision, given that the next dividend is
[tex]$4.53 per share, the required return is 14.7%, and the growth rate in dividends is 5.9% per year. 4) Find the dividend growth rate for a stock given that the current dividend is $[/tex]2.53 per
share, the required return is 15.8%, and the stock price is [tex]$38.5 per share. 5) Find the dividend growth rate for a stock given that the next dividend is $[/tex]4.21 per share,
the required return is 9%, and the stock price is [tex]$98.36 per share. 6) Find the required return on a stock given that the next dividend is $[/tex]5.96 per share, the
growth rate in dividends is 8.62%, and the stock price is [tex]$76.61 per share 7) Assume you bought 100 shares of NewTech common stock on January 15, 2003 at $[/tex]50.00 per share and sold it on January 15, 2004 for [tex]$40.00 per share. What was your holding period yield? 8) Suppose you bought a GM corporate bond on January 25, 2001 for $[/tex]750, on January 25,
2004 sold it for $650.00. What was your annual holding period return?
9) Use the information below for the following problem(s) You have concluded that next
year the following relationships are possible:
Economic Status
Weak Economy
Probability
15
Rate of Return
-5%
Static Economy
.60
5%
Strong Economy
25
15%
a) . What is your expected rate of return [E(R)] for next year?
b). What is your expected rate of return [E(R)] for next year?
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