If D1 = $8, g (which is constant) = 4.7%, and P0 = $169, 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?

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? 

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?

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?

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?

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.)

Which of the following bond prices is most sensitive to changes in interest rates?