FIN 419 ASSIST Career Path Begins/fin419assist.com FIN 419 ASSIST Career Path Begins/fin419assist.com | Page 33

Chapter 9 : 10
Chapter 11 : 12
Chapter 16: 9, 10
Chapter 7
5. King Waterbeds has an annual cash dividend policy that raises the
dividend each year
by 4%. Last year’s dividend was $0.40 per share. What is the price of
this stock if
a. an investor wants a 5% return?
b. an investor wants an 8% return?
c. an investor wants a 10% return?
d. an investor wants a 13% return?
e. an investor wants a 20% return?
15. Using Yahoo! Finance (http://finance.yahoo.com/) and ticker
symbol PEP, find
PepsiCo’s historical dividend payment and current price. Historical
dividends are available in the historical price section. Use these
payments to find the annual
dividend growth rate. (If you have a quarterly pattern be sure to
annualize this