optionals - Chap 8

optionals - Chap 8 - 8 ________ 1. You would like to earn a...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 8 ________ 1. You would like to earn a 9.5 percent rate of return on a 9 percent preferred stock. How much are you willing to pay for 10 shares? a. $94.74 b. $105.56 c. $947.37 d. $1,055.56 ________ 2. The common stock of Andys Sporting Goods sells for $25.40 a share. The company recently paid their annual dividend of $1.30 per share and expects to increase this dividend by 3 percent annually. What is the rate of return on this stock? a. 5.12 percent b. 5.27 percent c. 8.12 percent d. 8.27 percent ________ 3. The Black & Gold Co. is expected to pay a $2.50 annual dividend next year. The market rate of return on this security is 12 percent and the market price is $31.40 a share. What is the expected growth rate of Black & Gold? a. 3.74 percent b. 3.89 percent c. 4.04 percent d. 4.12 percent ________ 4. Battles, Inc. just paid an annual dividend of $1.20 a share. The dividend will increase by 3 percent for the next three years and then increase by 2 percent annually thereafter. What is the present value of this stock at a next three years and then increase by 2 percent annually thereafter....
View Full Document

This note was uploaded on 06/27/2008 for the course FINC 450 taught by Professor Ddavidson during the Spring '08 term at Loyola Chicago.

Page1 / 2

optionals - Chap 8 - 8 ________ 1. You would like to earn a...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online