81. KL Airlines paid an annual dividend of $1.42 a

share last month. The company is planning on paying $1.50, $1.75, and $1.80 a

share over the next 3 years, respectively. After that, the dividend will be

constant at $2 per share per year. What is the market price of this stock if

the market rate of return is 10.5 percent?

A. $15.98

B. $16.07

C. $18.24

D. $21.16

E. $24.10

82. Renew It, Inc., is preparing to pay its first

dividend. It is going to pay $0.45, $0.60, and $1 a share over the next three

years, respectively. After that, the company has stated that the annual

dividend will be $1.25 per share indefinitely. What is this stock worth to you

per share if you demand a 10.8 percent rate of return on stocks of this

type?

A. $6.67

B. $8.21

C. $10.14

D. $11.47

E. $12.03

83. Diets For You announced today that it will begin

paying annual dividends next year. The first dividend will be $0.12 a share.

The following dividends will be $0.15, $0.20, $0.50, and $0.60 a share annually

for the following 4 years, respectively. After that, dividends are projected to

increase by 4 percent per year. How much are you willing to pay to buy one

share of this stock today if your desired rate of return is 8.5 percent?

A. $9.67

B. $9.94

C. $10.38

D. $10.50

E. $10.86

84. Crystal Glass recently paid $3.60 as an annual

dividend. Future dividends are projected at $3.80, $4.10, and $4.25 over the

next 3 years, respectively. Beginning 4 years from now, the dividend is

expected to increase by 3.25 percent annually. What is one share of this stock

worth to you if you require a 12.5 percent rate of return on similar

investments?

A. $42.92

B. $43.40

C. $45.12

D. $45.88

E. $46.50

85. Langley Enterprises pays a constant dividend of

$0.60 a share. The company announced today that it will continue to pay the

dividend for another 2 years after which time all dividends will cease. What is

one share of this stock worth today if the required rate of return is 16.5

percent?

A. $0.92

B. $0.96

C. $1.04

D. $1.09

E. $1.20

86. Yesteryear Productions pays no dividend at the

present time. The company plans to start paying an annual dividend in the

amount of $0.40 a share for two years commencing four years from today. After

that time, the company plans on paying a constant $0.75 a share annual dividend

indefinitely. How much are you willing to pay to buy a share of this stock

today if your required return is 11.6 percent?

A. $3.78

B. $4.22

C. $4.37

D. $4.71

E. $4.98

87. Sweatshirts Unlimited is downsizing. The company

paid a $2.80 annual dividend last year. The company has announced plans to

lower the dividend by 25 percent each year. Once the dividend amount becomes

zero, the company will cease all dividends and go out of business. You have a

required rate of return of 15.5 percent on this particular stock given the

company’s situation. What are your shares in this firm worth today on a per

share basis?

A. $5.19

B. $6.91

C. $8.68

D. $19.29

E. $22.11

88. Dexter Metals, paid its first annual dividend

yesterday in the amount of $0.18 a share. The company plans to double each

annual dividend payment for the next 3 years. After that time, it plans to pay

$1.25 a share for 2 years than then pay a constant dividend of $1.60 per share

indefinitely. What is one share of this stock worth today if the market rate of

return on similar securities is 10.24 percent?

A. $12.32

B. $12.77

C. $13.20

D. $14.26

E. $14.79

89. Marshall Arts Studios just paid an annual dividend

of $1.36 a share. The firm plans to pay annual dividends of $1.40, $1.46, and

$1.58 over the next 3 years, respectively. After that time, the dividends will

be held constant at $1.60 per share. What is this stock worth today at a 9

percent discount rate?

A. $14.08

B. $14.30

C. $16.67

D. $16.79

E. $17.46

90. Home Care Providers is paying an annual dividend

of $1.10 every other year. The last dividend was paid two years ago. The firm

will continue this policy until 3 more dividend payments have been paid. One

year after the last dividend normal payment, the company plans to pay a final

liquidating dividend of $40 per share. What is the current market value of this

stock if the required return is 17 percent?

A. $18.92

B. $20.74

C. $23.16

D. $24.14

E. $24.53