Hightower Pharmacy Just Paid A $3.10 Annual Dividend. The Company Has A Policy Of Increasing The Dividend By 4.2 Percent Annually

Question 4

Hightower Pharmacy just paid a $3.10 annual dividend. The company has a policy of increasing the dividend by 4.2 percent annually. You would like to purchase 100 shares of stock in this firm but realize that you will not have the funds to do so for another four years. If you require a 16 percent rate of return, how much will you be willing to pay per share for the 100 shares when you can afford to make this investment?

Don't use plagiarized sources. Get Your Custom Essay on
Hightower Pharmacy Just Paid A $3.10 Annual Dividend. The Company Has A Policy Of Increasing The Dividend By 4.2 Percent Annually
Just from $5/Page
Order Essay
[removed] $31.50
[removed] $32.27
[removed] $33.12
[removed] $33.78
[removed] $34.47


Question 5

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?

[removed] 7.42 percent
[removed] 7.79 percent
[removed] 19.67 percent
[removed] 20.14 percent
[removed] 20.86 percent


Question 6

An 8 percent corporate bond that pays interest semi-annually was issued last year. Which two of the following most likely apply to this bond today if the current yield-to-maturity is 7 percent?I. a structure as an interest-only loanII. a current yield that equals the coupon rateIII. a yield-to-maturity equal to the coupon rateIV. a market price that differs from the face value

[removed] I and III only
[removed] I and IV only
[removed] II and III only
[removed] II and IV only
[removed] III and IV only


Question 7

The bonds issued by Stainless Tubs bear an 8 percent coupon, payable semiannually. The bonds mature in 11 years and have a $1,000 face value. Currently, the bonds sell for $952. What is the yield to maturity?

[removed] 7.87 percent
[removed] 7.92 percent
[removed] 8.08 percent
[removed] 8.69 percent
[removed] 9.20 percent

Question 8

Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15 percent a year for the next 4 years and then decreasing the growth rate to 3.5 percent per year. The company just paid its annual dividend in the amount of $0.20 per share. What is the current value of one share of this stock if the required rate of return is 15.5 percent?

[removed] $1.82
[removed] $2.04
[removed] $2.49
[removed] $2.71
[removed] $3.05


Question 11

Miller Brothers Hardware paid an annual dividend of $0.95 per share last month. Today, the company announced that future dividends will be increasing by 2.6 percent annually. If you require a 13 percent rate of return, how much are you willing to pay to purchase one share of this stock today?

[removed] $9.23
[removed] $9.37
[removed] $9.67
[removed] $9.72
[removed] $9.88


Question 12

Dexter Mills issued 20-year bonds a year ago at a coupon rate of 10.2 percent. The bonds make semiannual payments. The yield-to-maturity on these bonds is 9.2 percent. What is the current bond price?

[removed] $985.55
[removed] $991.90
[removed] $1,042.16
[removed] $1,089.02
[removed] $1,098.00


Question 15

Redesigned Computers has 6.5 percent coupon bonds outstanding with a current market price of $832. The yield to maturity is 16.28 percent and the face value is $1,000. Interest is paid semiannually. How many years is it until these bonds mature?

[removed] 2.10 years
[removed] 4.19 years
[removed] 7.41 years
[removed] 9.16 years
[removed] 18.32 years


Question 16

Green Roof Inns is preparing a bond offering with a 6 percent, semiannual coupon and a face value of $1,000. The bonds will be repaid in 10 years and will be sold at par. Given this, which one of the following statements is correct?

[removed] The bonds will become discount bonds if the market rate of interest declines.
[removed] The bonds will pay 10 interest payments of $60 each.
[removed] The bonds will sell at a premium if the market rate is 5.5 percent.
[removed] The bonds will initially sell for $1,030 each.
[removed] The final payment will be in the amount of $1,060.


Question 19

Oil Well Supply offers 7.5 percent coupon bonds with semiannual payments and a yield to maturity of 7.68 percent. The bonds mature in 6 years. What is the market price per bond if the face value is $1,000?

[removed] $989.70
[removed] $991.47
[removed] $996.48
[removed] $1,002.60
[removed] $1,013.48


Question 20

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?

[removed] $1.80
[removed] $1.86
[removed] $1.92
[removed] $1.98
[removed] $2.10

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We are committed to making our customer experience enjoyable and that we are keen on creating conditions where our customers feel secured and respected in their interactions with us.
With our qualified expert team who are available 24/7, we ensure that all our customer needs and concerns are met..

Money Payback-back guarantee

Our refund policy allows you to get your money back when you are eligible for a refund. In such a case, we guarantee that you will be paid back to your credit card. Another alternative we offer you is saving this money with us as a credit. Instead of processing the money back, keeping it with us would be an easier way to pay for next the orders you place

Read more

Zero-plagiarism guarantee

All orders you place on our website are written from scratch. Our expert team ensures that they exercise professionalism, the laid down guidelines and ethical considerations which only allows crediting or acknowledging any information borrowed from scholarly sources by citing. In cases where plagiarism is confirmed, then the costumier to a full refund or a free paper revision depending on the customer’s request..

Read more

Free-revision policy

Quality is all our company is about and we make sure we hire the most qualified writers with outstanding academic qualifications in every field. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

We understand that students are not allowed to seek help on their projects, papers and assignments from online writing services. We therefore strive to uphold the confidentiality that every student is entitled to. We will not share your personal information elsewhere. You are further guaranteed the full rights of originality and ownership for your paper once its finished.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages