If D1 = $9, g (which is constant) = 6.6%, and P0 = $139, what is the stock’s  expected capital gains yield for the coming year?

Malko Enterprises’ bonds currently sell for $1,264.  They have a 15-year maturity,  an annual coupon of $90.8, and a par value of $1,000.  What is their current  yield?

If D1 = $6, g (which is constant) = 8%, and P0 = $78, what is the stock’s  expected capital gains yield for the coming year?

A share of common stock has just paid a dividend of $3.  If the expected long-run  growth rate for this stock is 17.2 percent, and if investors require a 27 percent rate of  return, what is the price of the stock?

The last dividend paid by Klein Company was $1.6.  Klein’s growth rate is expected to be  a constant 6 percent for 2 years, after which dividends are expected to grow at a rate  of 4 percent forever.  Klein’s required rate of return on equity (rs) is 13.9 percent.   What is the current price of Klein’s common stock? 

McKenna Motors is expected to pay a $5 per-share dividend at the end of the year  (D1 = $5).  The stock sells for $18 per share and its required rate of return is 30.8  percent.  The dividend is expected to grow at a constant rate, g, forever.  What is the  growth rate, g, for this stock?

Which of the following is not a stock market index?

Meade Corporation bonds mature in 17 years and have a yield to maturity of 13.5 percent.  The par value of the bonds is $1,000.  The bonds have a 6 percent coupon rate and pay  interest on a semiannual basis.  What are the current yield and capital gains yield on the  bonds for this year? (Assume that interest rates do not change over the course of the  year.)

A stock with a required rate of return of 13 percent sells for $28 per share. The stock’s  dividend is expected to grow at a constant rate of 3.6 percent per year. What is the  expected year-end dividend, D1, on the stock?

A 21-year bond with a par value of $1,000 has a 5.7 percent annual coupon. The bond  currently sells for $842.  If the bond’s yield to maturity remains at its current rate,  what will be the price of the bond 3 years from now?