$1.$ Explain the following statement: Whereas a bond contains a promise to pay interest, a share of common stock typically provides an expectation of but no promise of dividends plus capital gains.

$2.$ What are the two parts of most stocks' expected total return?

$3.$ If D$1=$ $$2\mathrm{.}00,$ g $=6\%,$ and Po $=$ $$40\mathrm{.}00,$ what are the stock's expected dividend yield, capital

gains yield, and total expected return for the coming year? $(5\%,6\%,11\%)$

$4.$ Is it necessary for all investors to have the same expectations regarding a stock for the stock to be in equilibrium?

$5.$ What would happen to a stock's price if the "marginal investor examined a stock and concluded that its intrinsic value was greater than its current market price?