1. Intercontinental Inc. is an outdoor furniture company that is planning to considerably grow over the coming years. Gaining very good reputation with its high-quality products, the company is projecting that it can grow at 10% over the coming 4 years and then the growth rate will decrease to 3% thereafter. Its earning per share (EPS) this year was $4 and the company's dividend pay-out ratio was 30%, that is its most recent dividends was $1.2. In order to finance this growth, the company needs to invest in new machinery and working capital. The company is considering three financing options to finance this growth: Either to raise equity, get an amortising loan from its bank or issue a bond. 9. In the above case, the bond will be selling at: (5 points) A Premium A Discount Par O Cannot Tell 1. Intercontinental Inc. is an outdoor furniture company that is planning to considerably grow over the coming years. Gaining very good reputation with its high-quality products, the company is projecting that it can grow at 10% over the coming 4 years and then the growth rate will decrease to 3% thereafter. Its earning per share (EPS) this year was $4 and the company's dividend pay-out ratio was 30%, that is its most recent dividends was $1.2. In order to finance this growth, the company needs to invest in new machinery and working capital. The company is considering three financing options to finance this growth: Either to raise equity, get an amortising loan from its bank or issue a bond. 9. In the above case, the bond will be selling at: (5 points) A Premium A Discount Par O Cannot Tell