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##### Atlas Mines has adopted a policy of increasing the annual dividend on its common stock

**Description**

solution

**Question**

1) 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? (5 pts);2) The next dividend payment by Hillside Markets will be $2.35 per share. The dividends are;anticipated to maintain a 4.5 percent growth rate forever. The stock currently sells for $65 per;share. What is the dividend yield? (5 pts);3) KL Airlines 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 $1.50 per share per year. What is the;market price of this stock if the market rate of return is 10.5 percent? (10 pts);4) The current dividend yield on Clayton's Metals common stock is 3.2 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? (10 pts);5) What is the expected return and standard deviation of a portfolio that is invested in stocks A;B, and C? Twenty five percent of the portfolio is invested in stock A, 40 percent is invested in;stock C, and the remaining is invested in stock B. (20 pts)

Paper#25681 | Written in 18-Jul-2015

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