1. Rating agencies provide ratings on both government bonds and corporate bonds. How might these bonds be evaluated differently? For instance, what extra things might be considered for sovereign bonds and not corporates and vice versa?
2. What is the price of a share of stock if the beta is? 2, its next dividend is projected to be $2 and its growth rate is expected to be a constant 5%?, assuming the market return is 15% and the? risk-free rate is 7%??
3. A share of preferred stock has a par value of $20. It pays a 3% dividend. If the required return is 7 %, what is the price of the? stock?