Angelina's made two announcements concerning its common stock today. F

1.The common stock of Neal’s Metal Works sells for $32.89 a share. The company recently paid their annual dividend of $1.80 per share and expects to increase this dividend by 2.5 percent annually. What is the rate of return on this stock?选项： A:5.61 percent; B:7.84 percent; C:7.97 percent; D:8.11 percent

2.The common stock of Textile Mills pays an annual dividend of $1.85 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? 选项： A、$15.42 B、$15.81 C、$16.56 D、$16.79

3.New Company's sales and profits are growing rapidly, and so is its dividend. Its dividend is growing at an annual rate of 25%. This growth in the dividend is expected to continue for two years. After that, the rate of growth is expected to slow down to 10% per year. The investors' required rate of return on the stock is 16%. The next annual dividend is expected to be $1.00. The beta of New Company's stock is 1.5. The U.S. Treasury bill rate is 4%. What is the risk premium of the market? A. 16% B. 12% C. 4% D. 8%

4.Suppose you know that a company’s stock currently sells for $65 per share and the required return rate on the stock is 11%. You also know that the total return on the stock is evenly divided between capital gain yield and dividend yield. If it’s the company’s policy to always maintain a constant growth rate i this dividends, what is the current dividend per share?

5.Company A’s preferred stock pays a 7.50 yuan annual dividend. What is the maximum price you are willing to pay for one share of this stock today if your required return is 7.5 percent?选项： A:32.26 yuan; B:35.48 yuan; C:100.00 yuan; D:107.50 yuan

6.The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 20% a year for the next four years and then decreasing the growth rate to 5% per year. The company just paid its annual dividend in the amount of $1.00 per share. What is the current value of one share if the required rate of return is 9.25%?

7.Stock A has a required return of 10 percent. Its dividend is expected to grow at a constant rate of 7 percent per year. Stock B has a required return of 12 percent. Its dividend is expected to grow at a constant rate of 9 percent per year. Stock A has a price of $25 per share, while Stock B has a price of $40 per sharE. If the stock market were efficient, these two stocks should have the same pricE.（）

8.Stock A has a required return of 10 percent. Its dividend is expected to grow at a constant rate of 7 percent per year. Stock B has a required return of 12 percent. Its dividend is expected to grow at a constant rate of 9 percent per year. Stock A has a price of $25 per share, while Stock B has a price of $40 per sharE. If the stock market were efficient, these two stocks should have the same pricE.（）选项： A:对 B:错

9.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 $0.80 annual dividend per share? 选项： A、$5.33 B、$6.00 C、$6.33 D、$7.00

10.An investor evaluating a company’s common stock has gathered the followinginformation: Current dividend per share=$2.40 Dividend growth rate expectedduring Years 1 to 2=20% Dividend growth rate expected from Year 3 onward=4%Company’s weighted average cost of capital=13% Required rate of return onequity=15% The intrinsic value per share of this common stock is closest to: 选项： A:$24.86 B:$26.59 C:$29.82

11.Super Computer Company's stock is selling for $100 per share today. It is expected that, at the end of one year, it will pay a dividend of $6 per share and then be sold for $114 per share. Calculate the expected rate of return for the shareholders.选项： A:20 percent; B:15 percent; C:10 percent; D:25 percent

12.Super Computer Company's stock is selling for $100 per share today. It is expected that, at the end of one year, it will pay a dividend of $6 per share and then be sold for $114 per share. Calculate the expected rate of return for the shareholders. 选项： A、20 percent B、15 percent C、10 percent D、25 percent

13.An equity analyst is tracking the stock price of an Information Technology (IT) company. The company’s share currently trades at a price of $50. Based on the company’s financial statements, the analyst predicts that the company would pay a dividend of $3 and $4 in the next two years. He also forecasts that the company’s shares would trade at $60 at the end of these two years. For an investor with a required rate of return of 10%, the best course of action would most likely be to: 选项： A: buy shares of the stock. B: short-sell shares of the stock. C: neither buy nor short-sell shares of the stock.

14.Bayside Marina just announced it is decreasing its annual dividend from $1.48 per share to $1.45 per share effective immediately. If the dividend yield remains at its pre-announcement level, then you know the stock price: 选项： A:was unaffected by the announcement. B:increased proportionately with the dividend decrease. C:decreased proportionately with the dividend decrease D:decreased by $.03 per share. E:increased by $.03 per share.

15.After analyzing the stock of Beta Inc., Megan concludes that the stock is undervalued and its price would soon increase. Based on her conclusions, she should least likely: 选项： A、Purchase put options for the company’s stock. B、Purchase call options for the company’s stock. C、Write put options on the company’s stock.

16. The amount of income earned per share of a company's outstanding common stock is known as: 选项： A:Restricted retained earnings per share.; B:Earnings per share.; C:Continuing operations per share.; D:Dividends per share.; E:Book value per share.

17.One year ago, you purchased 200 shares of SL Industries stock at a price of $18.97 a share. The stock pays an annual dividend of $1.42 per share. Today, you sold all of your shares for $17.86 per share. What is your total dollar return on this investment? 选项： A:$50 B:$91 C:$58 D:$62.00 E:$82

18.An e-commerce firm began its operations one year ago. The company's management has indicated that it will start paying dividends from its fifth operating year and onward and expect to maintain a dividend payout ratio of 40% with a dividend growth rate of 5%. If the company pays a dividend of $5.00 five years from now, then the company's stock price today given a required rate of return for investors of 8% is closest to: 选项： A: $210.10. B: $119.10. C: $120.10.

19.You purchased 300 shares of common stock on margin for $60 per share. The initial margin is 60%, and the stock pays no dividend. What would your rate of return be if you sell the stock at $45 per share? Ignore interest on margin.( ) 选项： A、25.00% B、–33.33% C、44.31% D、–41.67% E、–54.22%

20.If a company's cost of capital increases unexpectedly, which of the following actions will help it maintain or increase its stock price? ( ) 选项： A、Issue a stock dividend B、Decrease its asset turnover C、Increase its gross margin D、Increase its inventory

21.What should be included in the company introduction? (10分) 选项： A、what products or services the company provides B、company’s goal in the future C、what achievements the company has made D、how the company grew to what it is today E、address of the founde F、what principles or concept the company has in running its business

22.One year ago, you purchased 100 shares of Best Wings stock at a price of $38.19 a share. The company pays an annual dividend of $.46 per share. Today, you sold for the shares for $37.92 a share. What is your total percentage return on this investment? 选项： A:2.62 percent B:1.93 percent C: 2.72 percent D:1.08 percent E: .50 percent