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finance Assignment 3




Question;Assignment 3;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#47904 | Written in 18-Jul-2015

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