1. A stock paying $5 in annual dividends sells now for $100 and has an expected return of 20%. What might investors expect to pay for the stock one year from now?
A) $182.00
B) $186.00
C) $115.00
D) $110.00
E) None of the above
2. What is the expected constant growth rate of dividends for a stock currently priced at $50, that is expected to pay a dividend of $5 next year, and has a required return of 20%?
A) 13%
B) 10%
C) 11%
D) 12%
E) none of the above
3. What is the plowback ratio for a stock with current price of $30, earnings of $5 per share next year, a discount rate of 20% , and a rate of return on equity of 25% ?
A) 0.5
B) 0.2
C) 0.4
D) 0.1
E) None of the above