If the answer is a whole dollar number, please report the answer in currency format, with commas and no decimals (example $10,000). If the number is negative please express it as ($10,000).

If the answer is a percent - then please express it with the percentage sign and rounded-up to one decimal. For example, if you got 7.89 as a percent - you would need to express it as 7.9%. If you got negative 7.89% you would need to express it as (7.9%).

Medical Corporation of America (MCA) has a current stock price of $36, and its last dividend (D0) was $2.40. In view of MCAs strong financial position, its required rate of return is 12%. If MCAs dividends are expected to grow at a constant rate in the future, what is the firms expected stock price in five years?

Choice: $43.22

Choice: $45.95

Choice: $52.10

Choice: $68.75

A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $2 per share. The dividend is expected to grow at a constant rate of 5% per year. The stocks required rate of return is 12%. What is the expected dollar dividend at the end of three years?

Choice: $2.32

Choice: $3.12

Choice: $5.00

Choice: 12%

A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $2 per share. The dividend is expected to grow at a constant rate of 5% per year. The stocks required rate of return is 12%. What would be a price for this stock?

Choice: $25

Choice: $30

Choice: $40

Choice: $45

A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $2 per share. The dividend is expected to grow at a constant rate of 5% per year. The stocks price is $30 a share. The stocks required rate of return is 12%. What is the expected capital gains yield at the end of the third year?

Choice: 2.5%

Choice: 5.0%

Choice: 7.5%

Choice: $30 at end of year

A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $2 per share. The stocks price is $30 a share. The dividend is expected to grow at a constant rate of 5% per year. The stocks required rate of return is 12%. What is the expected total return yield (this is the expected dividend yield + expected capital gains yield) for each of the next three years?

Choice: 8%

Choice: 10%

Choice: 12%

Choice: 14%