Problem
A. Hailey Corporation pays a constant $7.75 dividend on its stock. The company will maintain this dividend for the next 15 years and will then cease paying dividends forever. If the required return on this stock is 11 percent, what is the current share price?
B. A Japanese company has a bond outstanding that sells for 94 percent of its *100,000 par value. The bond has a coupon rate of 6.1 percent paid annually and matures in 17 years. What is the yield to maturity of this bond?