The total return on any investment has two possible components. They are the ____________ part and the _________ part. For stocks the ___________ part is represented by the ______________ and the ___________ part represents the __________________.

If the total return on a share of stock is 8%, next years expected dividend is $2.50 and the current stock price is $50.00, what is the expected capital gain yield on this stock?

A stock just paid a dividend of $2.00 per share. Dividends are expected to grow by $0.50 per share for each of the next 5 years at which time you expect to be able to sell the stock for $45.40. Draw the time line for the cash flows just described. If you want to earn a minimum of 10% on this stock, what is the most that you would be willing to pay for a share today?

XYZ Corporations most recent dividend was $1.50 with dividends expected to grow by 5% per year hereafter. If your minimum required rate of return is 7%, what is the most that you would be willing to pay for a share today?

8. Owl Industries most recent dividend was $2.00 per share. Dividends are expected to grow at an annual rate of 12% for the next 3 years and then at 4% thereafter. Draw the time line for the CFs just described. If you want to earn a minimum rate of return of 12% on this stock, what is the most that you would be willing to pay for a share today?