1. You purchased a stock when the last paid dividend was $4.00. What was the growth rate of dividends if you required a 12% return for the purchase, assumed a constant rate of growth, and paid $44.44 for the stock?
2. Elmofud, Inc. is considering splitting its stock. The stock is currently priced at $100 per share. You own 200 shares of the stock. If the firm proceeds with a 5 for 1 split what will your position in the stock be after the split – how many shares will you own, what will the price per share be, and what will your total value be in the stock of Elmofud, Inc.?
3. You currently own 100 shares of stock in BugsyBuns, Inc. which is currently priced at $6.00 per share. If the firm undertakes a 1 for 4 reverse split, what will your position in the stock be after the split - how many shares will you own, what will the price per share be, and what will your total value be in the stock of BugsyBuns, Inc.?