FIN 3000 Chapter 9 Quiz

kindzi company has preferred stock outstanding that is expected to pay an annual dividend of $4.88 every year in perpetuity. if the required return is 4.69 percent, what is the current stock price

$104.05

how much are you willing to pay for one share of govender stock if the company just paid an annual dividend of $1.61, the dividneds increase by 4.2 percent annually, and you require a return of 16.4 percent

$13.75

the common stock of salazar insurance pays a constant annual dividend of $4.80 per share. what is one share of this stock worth at a discount rate of 13.3 percent

$36.09

red sun rising just paid a dividend of $2.43 per share. the company said that it will increase the dividend by 15 percent and 10 percent over the next two years, respectively. after tha, the company is expected to increae its annual dividend at 4.1 percent. if the required return is 11.5 percent, what is the stock price today

$39.76

santa klaus toys just paid a dividend of $2.30 per share. the required return is 9.6 percent and the perpetual dividend growth rate is 3.2 percent. what price should this stock sell for five years from today

$43.41

Stoneheart Group is expected to pay a dividend of $2.93 next year. The company's dividend growth rate is expected to be 4.3 percent indefinitely and investors require a return of 10.5 percent on the company's stock. What is the stock price?

$47.26

over the next three years, Distant Groves will pay annual dividends of $0.65, $0.70, and $0.75 per share, respectively. after than, dividends are projected to increase by 2 percent per year. what is one share of this stock worth today at a required rate of return of 14.5 percent

$5.68

you are considering purchasing stock in canyon echo. you feel the company will increase its dividend at 4.1 percent indefinitely. the company just paid a dividend of $3.20 and you feel the required return on the stock is 10.3 percent. what is the price per share of the company's stock

$53.73

you are evaluating the stock of thomas inc. the company will pay a dividend of $2.44 per share next year and pledges to increase its dividend by 3.7 percent per year indefinitely. if you require a return of 8 percent on your investment, how much will you pay for the company's stock today

$56.74

michael's incorporated just paid $2.60 to its shareholders as the annual dividend. simultaneously, the company announced that future dividends will be increasing by 5.6 percent. if you require a rate of return of 9.8 percent, how much are you willing to pay today to purchase one share of the company's stock

$65.37

sankey company has earnings per share of $3.75. the benchmark PE is 18.3 times. what stock price would you cinsider appropriate

$68.63

sandy inc. just paid its annual dividend of $0.35 per share. for the next 3 years, the dividends are expected to grow at 25 percent annually and then level off to an annual growth rate of 4 percent indefinitely. what is the price of this stock today given a required return of 12 percent

$7.64

a stock just paid a dividend of $5.45 and is expected to maintain a constant dividend growth rate of 4.5 percent indefinitely. if the current stock price is $79, what is the required return on the stock

11.71%

cabrera carriers incorporated common stock offers an expected total return of 14.56 percent. the last annnual dividend was $2.27 per share. dividends increae at a constant 2.1 percent per year. what is teh dividend yield

12.46%

voltanis corporation has preferred stock outstanding that will pay an annual dividend of $4.11 every year in perpetuity. if the stock currently sells for $100.01 per share, what is the required return

4.11%

Bald Eagle Co. has a dividend yield of 3.6 percent and is expected to maintain a constant 1.5 percent growth rate in its dividends indefinitely. based on this information, what is the required return on the company's stock?

5.10 percent

the common stock of shepard auto sells for $47.92 per share. the stock is expected to pay $2.28 per share next year when the annual dividend is distributed. the company increases its dividends by 1.65 percent annually. what is the market rate of return on this stock

6.41%

what is the rate of return on a preferred share of stock that pays an annual dividend of $3.10 and sells for $36.80 per share?

8.42 percent

which one of following is the rate at which a stock's pruce is expected to appreciate

capital gains yield

which one of the following types of stock is defined by the fact that it receives no preferential treatment in respect to either dividends or bankruptcy proceedings

common

an agent who maintains an inventory from which he or she buys and sells securities is called a

dealer

what are the distributions of either cash or stock to shareholders by a corporation called

dividends

the annual dividend yield is computed by dividing ____________________ annual dividend by the current stock price

next year's

Ernst & Frank stock is listed on NASDAQ. The firm is planning to issue some new equity shares for sale to the general public. This sale will definitely occur in which one of the following markets?

primary