1.

Earl's Turbos has common stock that currently sells for $36.53 a share. The stock is expected to pay a dividend of $2.50 per share next year. Earl's has established a pattern of increasing its dividends by 4.6 percent annually and expects to continue doing so. What is the market rate of return on this stock?

2.

A corporate bond paying a coupon rate of 5.16 percent and semiannual coupon payments matures in 12 years. The Yield to Maturity is 6.37 percent. What is the effective annual yield?

3.

Zamboni Industries just issued 330,000 bonds with a coupon rate of 6.32 percent paid semiannually that mature in 15 years. The bonds have a YTM of 6.76 percent and have a par value of $2,000. How much money was raised from the sale of the bonds?