1. Industries that generally perform very well when the entire economy performs well and perform very badly when the economy performs badly are called:
A) risk-free industries.
B) diversified industries.
C) specific-risk industries.
D) cyclical industries.
2. CDB stock is currently priced at $73. The company will pay a dividend of $5.21 next year and investors require a return of 11.6 percent on similar stocks. What is the dividend growth rate on this stock?
3. A stock currently sells for $63. The dividend yield is 3.4 percent and the dividend growth rate is 4.7 percent. What is the amount of the dividend that was just paid?