1- A stock just paid a dividend of D0 = 1.50$. The required rate of return rs= 10.

1% and the constant

growth is g=4%. What is the current stock price?
2- If D1= 1.25, g (which is constant) = 4.7% and P0=$26, what is the stock’s expected dividend yield
for the coming year?
3- If D1= $1.25, g (which is constant) = 5.5$ and P0=$44, what is the stock’s expected total return
for the coming year?
4- X Company stock currently sells for 35$ per share. The dividend is projected to increase at a
constant rate of 5% per year. The required rate of return on the stock, rs, is 9%. What is the
stock’s expected price 3 years from today?
5- X Company is expected to pay a dividend of D1= $1.25 per share at the end of the year, and that
dividend is expected to grow at a constant rate of 6% per year in the future. The company’s Beta
is 1.15, the market risk premium is 5.5% and the risk-free rate is 4%. What is the company’s
current stock price?
6- A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return
is rs= 10.5%, and the expected constant growth rate is g=6.4%. What is the stock’s current price?
7- Stock X has the following data. Assuming the stock market is efficient and the stock is in
equilibrium, which of the following statements is Correct?
Expected Dividend, D1 =$3
Current Price, P0= $ 50
Expected constant growth rate = 6%
A- The stock’s required return is 10%
B- The stock’s expected dividend yield and growth rate are equal
C- The stock’s expected dividend yield is 5%
D- The stock’s expected capital gain is 5 %
E- The stock expected price 10 years from now is 100$