1. A share of common stock has a current price of $64.25 and is expected to grow at a constant rate of 4 percent. If you require a 6 percent rate of return, what is the current dividend, Do, on this stock?
2. Assuming that the dividend discount model holds, the price of one share in ABC Ltd is $18.76. If the current dividend is 10% per annum, what is the implied growth rate?
3. Anderson Corp. has 8 percent annual coupon bonds outstanding with 30 years left until maturity. The bonds have a face value (FV) of $1,000 and their current market price (PV) is $1,095.25. What is the yield to maturity (YTM) on Anderson's bonds?