1. Discuss the various payoff systems.
2. State and explain how CAPM has been extended to allow for additional determination of excess returns
3. Carter's preferred stock pays a dividend of $1.00 per quarter. If the price of the stock is $71.50, what is its nominal (not effective) annual rate of return? 4.84% 5.59% 4.64% 6.68% 5.52%
4. Francis Inc.'s stock has a required rate of return of 10.75%, and it sells for $19.00 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend?