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a) Lets say Omega Records dividend payment will be $1.03 one year from now, $2.75 two years from now, and $3.48 three years from now. Further assume that after this the dividend will grow by 5.38% each year. The required rate of return for the industry is 10.33%. What is the value of Omega Records stock?

b) What is the YTM for a zero-coupon bond with a current price of $870.32 a par value of $1,000 and a remaining term of 3 years? (Round to the nearest thousandths)

c)

What is the payback period (in annual terms) of the following cashflow stream?

Year 1: $-344

Year 4: $872

Year 8: $540

Year 12: $372

Year 17: $11

Year 19: $542

d) What is the IRR for the following cash flow stream? (Blackboard will yell at you about the units (%), when tested it looks like adding the units or leaving the units off of this problem makes no difference in the grading. Do NOT answer in decimal form!) Year 0: $-4829 --- Year 1: $2372 --- Year 5: $2850 --- Year 10: $2500