1. Madsen Motors's bonds have 5 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 6.5%; and the yield to maturity is 6%. What is the bond's current market price? Round your answer to the nearest cent.
2. What is franchising? With the help of a suitable example, explain how franchising can be a profitable alternative to FDI.
3. The next dividend payment by HG Enterprises will be $2.35 per share. The dividends are anticipated to maintain a 2.5 percent growth rate forever. The stock currently sells for $54.60 per share. What is the dividend yield?