1. True or False
For an investment to diversify a portfolio, its returns must be positively correlated with other returns.
2. If D = $1.25, g (which is constant) = 4.7%, and P = $32.00, what is the stock’s expected dividend yield for the coming year?
A. 3.79% B. 4.77% C. 3.91% D. 3.24% E. 3.05%
3. Francis Inc.'s stock has a required rate of return of 10.25%, and it sells for $52.50 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D ?
A. $2.34 B. $2.12 C. $2.57 D. $2.23 E. $1.90