1. James River Corp has preferred stock outstanding that trades at $125. If the stock’s return is 8%, what is the value of each annual dividend payment?
2. If D1 = $2.00, g = 6%, and P0 = $40, what is the stock’s expected dividend yield for the coming year?
3. Stock A’s expected return is 15% and its standard deviation is 5%. Which of the following statements is correct?