1. You are given the following yields: 6-month T-Bills yield 5% 12-month T-Bills yield 6% 10% T-Notes maturing in 18 months yield 6.5% 8% T-Notes maturing in 24 months yield 6.8% 9% T-Notes maturing in 30 months yield 7.2% Please find the zero-coupon rates for 6, 12, 18, 24, and 30 mPeriods of financial distress are most associated with:
A) continued increases in earnings.
B) steady growth.
C) dividend reductions.
D) increasing growth rates.
E) decreasing production costs.onths. Express your answers as annual percentage rates with 3 digits after the decimal point.
2. In what circumstances would you choose to use a dividend discount model rather than a free cash flow model to value a firm? Why?
3. During the last year, Sigma Co had net income of $148, paid $16 in dividends, and sold new stock for $35. Beginning equity for the year was $620. Ending equity was?