$1)$

ABC Corporation pay a dividend of $$4\mathrm{.}00$ per share and this dividend is expected to grow at an $18\%$ annual rate for three years and then at a $12\%$ rate for the next three years. After which it is expected to grow at a $7\%$ rate forever. What value would you place on the stock if a $15\%$ rate of return was required?

$2)$

The $12\%$ coupon rate bond of the ABC Company has exactly $20$ years remaining to maturity. The current market value is $$800$ and the par value of the bond is $$1000.$ Interest is paid quarterly. The company places a nominal annual required rate of return of $50\%$ on these bonds. What dollar intrinsic value should ABC place on one of these bounds?

$3)$

The common stocks of companies A&B have the expected returns and standard deviation given below. The expected correlation coefficient between two stocks is $-0\mathrm{.}40.$

$\backslash$table$[[$Expected return,standard deviation,Weight$],[0\mathrm{.}12,0\mathrm{.}06,0\mathrm{.}55],[0\mathrm{.}08,0\mathrm{.}05,0\mathrm{.}45]]$

Common stock A

common stock B