Answered>Order 8865

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 18.5 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 17.0 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 ____%