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