Question 1) Nynet, Inc., paid a dividend of $4.37 last year. The company’s management does not expect to increase its dividend in the foreseeable future. If the required rate of return is 16.5 percent, what is the current value of the stock? Current value $_______

Question 2) The current stock price of Largent, Inc, is $43.19‘ If the required rate of return is 23 percent, what is the dividend paid by this firm if the dividend is not expected to grow in the future? Dividend Paid $________

Question 3) Moriband Corp. paid a dividend of $2.75 yesterday‘ The company’s dividend is expected to grow at a steady rate of 5

percent for the foreseeable future. If investors in stocks of companies like Moriband require a rate of return of 185 percent, what

should be the market price of Moriband stock?

Market price $__________________

Question 4) Nyeil, Inc‘, is a consumer products firm that is growing at a constant rate of 5.5 percent. The firm’s last dividend was

$3.36. If the required rate of return is 170 percent, what is the market value of this stock if dividends grow at the same rate as the

firm? Market value $______________

Question 5) Proxicam, Inc, is expected to grow at a constant rate of 9.25 percent If the company’s next dividend, which will be paid in a year, is $1.26 and its current stock price is $22.35, what is the required rate of return on this stock? Rate of return_____%