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1. Madsen Motors's bonds have 23 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate s

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1. Madsen Motors's bonds have 23 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate s 996; and the yield to maturity is 1 196. What is the bond's current market price? A bond has a $1,000 par value, 12 years to maturity, and an 8% annual coupon. It sells for $980. What is its yield to maturity? 2, 3. Nesmith Corporation's outstanding bonds have a $1,000 par value, an 8% semiannual coupon, 14 years to maturity, and an 11% yield to maturity. What is the bond's price? Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 10%. What is the yield to maturity at a current market price of $8652 What is the yield to maturity at a current market price of $1,166 4. 5. Weston Corporation just paid a dividend of $1.00 a share (i.e., Do-$1.00). The dividend is expected to grow 12% a year for the next 3 years and the at 596 a year thereafter. What is the expected dividend per share for each of the next 5 years? 6. Tresnan Brothers is expected to pay a $1,800 per share dividend at the end of the year (i. DI-$1.80). The dividend is expected to grow at a constant rate of 4% a year. The requir rate of return, r,, on the stock is 10%. What is the stock's current value per share? ed Scampini Technologies is expected to generate $25 million in free cash flow next year, and FCF is expected to grow at a constant rate of 4% per year indefinitely. Scampini has no debt or preferred stock, and its cost of capital is 10%. If Scampini has 40 million shares of stock outstanding, what is the stock's value per share? 7

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