61. Upper Crust Bakers just paid an annual dividend of

$2.80 a share and is expected to increase that amount by 4 percent per year. If

you are planning to buy 1,000 shares of this stock next year, how much should

you expect to pay per share if the market rate of return for this type of

security is 11.50 percent at the time of your purchase?

A. $37.33

B. $38.16

C. $38.83

D. $40.38

E. $42.00

62. The common stock of Textile Mills pays an annual

dividend of $1.65 a share. The company has promised to maintain a constant

dividend even though economic times are tough. How much are you willing to pay

for one share of this stock if you want to earn a 12 percent annual

return?

A. $13.75

B. $14.01

C. $14.56

D. $14.79

E. $15.23

63. Show Boat Dinner Theatres has paid annual

dividends of $0.32, $0.48, and $0.60 a share over the past three years,

respectively. The company now predicts that it will maintain a constant

dividend since its business has leveled off and sales are expected to remain

relatively flat. Given the lack of future growth, you will only buy this stock

if you can earn at least a 16 percent rate of return. What is the maximum

amount you are willing to pay for one share of this stock today?

A. $3.43

B. $3.75

C. $4.43

D. $4.69

E. $4.82

64. The common stock of Auto Deliveries sells for

$28.16 a share. The stock is expected to pay $1.35 per share next year when the

annual dividend is distributed. The firm has established a pattern of

increasing its dividends by 3 percent annually and expects to continue doing

so. What is the market rate of return on this stock?

A. 7.42 percent

B. 7.79 percent

C. 19.67 percent

D. 20.14 percent

E. 20.86 percent

65. The current dividend yield on Clayton’s Metals

common stock is 2.5 percent. The company just paid a $1.48 annual dividend and

announced plans to pay $1.54 next year. The dividend growth rate is expected to

remain constant at the current level. What is the required rate of return on

this stock?

A. 6.55 percent

B. 6.82 percent

C. 7.08 percent

D. 7.39 percent

E. 7.75 percent

66. Northern Gas recently paid a $2.80 annual dividend

on its common stock. This dividend increases at an average rate of 3.8 percent

per year. The stock is currently selling for $26.91 a share. What is the market

rate of return?

A. 13.88 percent

B. 14.03 percent

C. 14.21 percent

D. 14.37 percent

E. 14.60 percent

67. Denver Shoppes will pay an annual dividend of

$1.46 a share next year with future dividends increasing by 4.2 percent

annually. What is the market rate of return if the stock is currently selling

for $38.90 a share?

A. 6.55 percent

B. 7.13 percent

C. 7.46 percent

D. 7.95 percent

E. 8.29 percent

68. Great Lakes Health Care common stock offers an

expected total return of 9.2 percent. The last annual dividend was $2.10 a

share. Dividends increase at a constant 2.6 percent per year. What is the

dividend yield?

A. 3.75 percent

B. 4.20 percent

C. 4.55 percent

D. 5.25 percent

E. 6.60 percent

69. Electronics, Inc. common stock returned a nifty

22.68 percent rate of return last year. The dividend amount was $0.25 a share

which equated to a dividend yield of 0.84 percent. What was the rate of price

appreciation for the year?

A. 21.84 percent

B. 22.38 percent

C. 22.60 percent

D. 22.87 percent

E. 23.52 percent

70. Roy’s Welding Supplies common stock sells for $38

a share and pays an annual dividend that increases by 3 percent annually. The

market rate of return on this stock is 8.20 percent. What is the amount of the

last dividend paid?

A. $1.80

B. $1.86

C. $1.92

D. $1.98

E. $2.10