71. Douglass Gardens pays an annual dividend that is

expected to increase by 4.1 percent per year. The stock commands a market rate

of return of 12.6 percent and sells for $24.90 a share. What is the expected

amount of the next dividend?

A. $2.03

B. $2.12

C. $3.17

D. $2.20

E. $2.28

72. Atlas Mines has adopted a policy of increasing the

annual dividend on its common stock at a constant rate of 2.75 percent

annually. The firm just paid an annual dividend of $1.67. What will the

dividend be six years from now?

A. $1.88

B. $1.92

C. $1.97

D. $2.02

E. $2.05

73. A stock pays a constant annual dividend and sells

for $56.10 a share. If the market rate of return on this stock is 15.85

percent, what is the amount of the next annual dividend?

A. $7.67

B. $7.94

C. $8.21

D. $8.89

E. $10.30

74. You want to purchase some shares of Green World

stock but need a 15 percent rate of return to compensate for the perceived risk

of such ownership. What is the maximum you are willing to spend per share to

buy this stock if the company pays a constant $0.90 annual dividend per

share?

A. $5.40

B. $6.00

C. $6.90

D. $7.20

E. $7.80

75. Home Canning Products common stock sells for

$44.96 a share and has a market rate of return of 12.8 percent. The company

just paid an annual dividend of $1.04 per share. What is the dividend growth

rate?

A. 8.29 percent

B. 8.45 percent

C. 9.23 percent

D. 9.67 percent

E. 10.25 percent

76. Winter Time Adventures is going to pay an annual

dividend of $2.86 a share on its common stock next year. This year, the company

paid a dividend of $2.75 a share. The company adheres to a constant rate of growth

dividend policy. What will one share of this common stock be worth five years

from now if the applicable discount rate is 11.7 percent?

A. $43.45

B. $43.87

C. $44.15

D. $45.19

E. $47.00

77. Hightower Pharmacy just paid a $3.10 annual

dividend. The company has a policy of increasing the dividend by 3.8 percent

annually. You would like to purchase 100 shares of stock in this firm but

realize that you will not have the funds to do so for another four years. If

you require a 16 percent rate of return, how much will you be willing to pay

per share for the 100 shares when you can afford to make this investment?

A. $29.50

B. $30.62

C. $31.12

D. $31.78

E. $32.47

78. National Warehousing just announced it is

increasing its annual dividend to $1.18 next year and establishing a policy

whereby the dividend will increase by 3.25 percent annually thereafter. How

much will one share of this stock be worth 8 years from now if the required

rate of return is 9.5 percent?

A. $24.38

B. $25.68

C. $26.51

D. $27.02

E. $27.37

79. Shares of Hot Donuts common stock are currently

selling for $32.35. The last annual dividend paid was $1.10 per share and the

market rate of return is 10.7 percent. At what rate is the dividend

growing?

A. 7.06 percent

B. 8.67 percent

C. 10.42 percent

D. 12.60 percent

E. 14.10 percent

80. Combined Communications is a new firm in a rapidly

growing industry. The company is planning on increasing its annual dividend by

15 percent a year for the next 4 years and then decreasing the growth rate to

3.5 percent per year. The company just paid its annual dividend in the amount

of $0.20 per share. What is the current value of one share of this stock if the

required rate of return is 15.5 percent?

A. $1.82

B. $2.04

C. $2.49

D. $2.71

E. $3.05