1. One year ago, Goran purchased 1 share of Red Royal Food stock. A share of Red Royal Food is currently priced at 73.25 dollars. Red Royal Food just paid an annual dividend of 3.55 dollars per share. If the stock’s percentage return was 6.33 percent over the past year (from one year ago to today), what was the price of the Red Royal Food share when Goran bought it?
2. The bond costs $900 and will pay you $1000 when it matures in 10 years. The current yield is 5%. What is the YTM of this bond? What is the appropriate price of the above bond, if the current YTM on similar bonds is 4.4%?
3. Oxygen Optimization stock has an expected annual return of 16.13 percent. The stock is expected to be priced at 93.93 dollars per share in 1 year and the stock currently has an expected dividend yield of 6.82 percent. What is the current price of the stock?