1. Micron issues a 9 percent coupon bond with a maturity of 5 years. The face value of the bond, payable at maturity, is $1,000. What is the value of this bond if your required rate of return is 12 percent?
2. Achi Corp. has preferred stock with an annual dividend of $2.79. If the required return on? Achi's preferred stock is 7.6%, what is its? price?
3. Krell Industries has a share price of $21.33 today. If Krell is expected to pay a dividend of $0.74 this year and its stock price is expected to grow to $24.84 at the end of the? year, what is? Krell's dividend yield and equity cost of? capital?