1. CAU has a bond maturing in eight years which pays 10% coupon semi-annually. The bond is quoted at 110 (i.e. the price is $110 for $100 par value). What is the YTM of the bond? 2. CAU just paid an annual dividend of $1.53 on its common stock. The dividend grows at an average rate of 2.5 percent per year. The stock is currently trading at $29.32 a share. What is the required return? 3. CAU just paid an annual dividend of $1.83 on its common stock. The dividend grows at an average rate of 2.5 percent per year. The stock is currently trading at $29.32 a share. What is the dividend yield? 4. CAU Corp. is expected to pay $7.11 dividend next year, and the dividends will grow at 5% a year. Assuming 20% required return, and that this condition continues forever, what would be the stock price 4 years from now? 5. CAU Corp. is expected to pay $7.11 dividend next year, and the dividends will grow at 5% a year. Assuming 20% required return, and that this condition continues forever, what would be the implied return in stock price over the next four years? CH You are hired as a financial consultant for CAU Corp. CAU wants to know what their stock price would be if it is taken public. In the most recent fiscal year, CAU's net income was $1.09 billion with 600 million shares outstanding. Use all of the following information on comparable companies to estimate the stock price of CAU Corp. Company name SKKU Inc. KHU Corp. Ewha Company Hanyang Inc. Sogang Co. Stock price $25 $30 $50 $125 $15 EPS $5.00 $2.00 $5.00 $5.00 $1.50