1. Grohl Co. issued 13-year bonds a year ago at a coupon rate of 7 percent. The bonds make semiannual payments. If the YTM on these bonds is 7 percent, what is the current bond price?

2.

Marcel Co. is growing quickly. Dividends are expected to grow at a 19 percent rate for the next 3 years, with the growth rate falling off to a constant 5 percent thereafter.

Required:

If the required return is 11 percent and the company just paid a $2.40 dividend. what is the current share price? (Do not round your intermediate calculations.)