1. Find the value of a stock that is expected to pay a dividend next year of $2.20, and for which analysts forecast growth rates that will continue to be 5% a year into the foreseeable future. assuming your required return is 12% to hold that company's stock, what is the current value?
$28.26
$30.64
$31.43
$32.86
2. What is the value, adjusted for annual payments, of a $1,000 par value (face value) 6% coupon rate bond with 10 years remaining to maturity, assuming the current market rate on similar risk debt is now 8%?
$878.26
$865.80
$832.44
$846.25
3. Find the value of a stock that is expected to pay a dividend next year of $2.20, assuming your required return is 12%.
$19.02
$18.87
$18.33
$19.99
4. What is the YTM of a $1,000 face value bond that is currently selling for $1,076.24 of it has a 7% annual coupon rate and nine years to maturity?
5.88%
6.42%
5.76%
6.02%