If D$1=$ $$1\mathrm{.}50,$ g $($which is constant$)=5\mathrm{.}4\%,$ and P$0=$ $$88,$ what is the stock's expected capital gains yield for the coming year?

a$.5\mathrm{.}40\%$

b$.1\mathrm{.}70\%$

c$.7\mathrm{.}10\%$

d$.1\mathrm{.}80\%$

e$.3\mathrm{.}70\%$

The Demarcus Company just paid a dividend of $$1\mathrm{.}55$ per share, and that dividend is expected to grow at a constant rate of $5\mathrm{.}10\%$ per year in the future. The company's beta is $2\mathrm{.}00,$ the market risk premium is $4\mathrm{.}60\%,$ and the risk$-$free rate is $4\mathrm{.}50\%.$ What is Demarcus's current stock price, P$0?$

a$.$ $$31\mathrm{.}94$

b$.$ $$18\mathrm{.}94$

c$.$ $$18\mathrm{.}02$

d$.$ $$38\mathrm{.}75$

e$.$ $$40\mathrm{.}73$

The last dividend paid by Demarcus Corporation was $$2\mathrm{.}75.$ The dividend growth rate is expected to be constant at $1\mathrm{.}7\%$ for $2$ years, after which dividends are expected to grow at a rate of $10\mathrm{.}0\%$ forever. The firm's required return $($rs$)$ is $14\mathrm{.}0\%.$ What is the best estimate of the current stock price? Do not round intermediate calculations.

a$.$ $$73\mathrm{.}56$

b$.$ $$64\mathrm{.}83$

c$.$ $$57\mathrm{.}44$

d$.$ $$66\mathrm{.}94$

e$.$ $$67\mathrm{.}58$