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. A stock has a market price of $46.10 and pays a $2.40 annual dividend. What is

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Question

. A stock has a market price of $46.10 and pays a $2.40 annual dividend. What is the
dividend yield?
a) 4.13 percent
b) 4.84 percent
c) 5.21 percent
d) 5.52 percent
e) 5.78 percent

10. The required return on Mountain Meadow stock is 14 percent and the dividend
growth rate is 3.5 percent. The stock is currently selling for $11.80 a share. What is the
dividend yield?
a) 7.50 percent
b) 8.00 percent
c) 9.75 percent
d) 10.50 percent
e) 12.50 percent

11. The Toy Box pays an annual dividend of $2.40 per share and sells for $46.60 a share
based on a market rate of return of 15 percent. What is the capital gains yield?
a) 7.35 percent
b) 7.78 percent
c) 9.23 percent
d) 9.85 percent
e) 10.11 percent

12. Western Beef stock is valued at $62.10 a share. The company pays a constant annual
dividend of $4.40 per share. What is the total return on this stock?
a) 6.62 percent
b) 6.81 percent
c) 7.09 percent
d) 7.49 percent
e) 7.82 percent

13. There are four open positions on the board of directors of Double Tree Restaurants.
The company has 180,000 shares of stock outstanding. Each share is entitled to one vote.
How many shares of stock must you own to guarantee your personal election to the board
of directors if the firm uses cumulative voting?
a) 36,001 shares
b) 37,501 shares
c) 38,501 shares
d) 40,001 shares
e) 42,001 shares

14. A preferred stock sells for $48.20 a share and has a market return of 15.65 percent.
What is the dividend amount?
a) $6.93
b) $6.80
c) $7.25
d) $7.42
e) $7.54

Explanation / Answer

a c d b d c