Question
1. Petscan Radiologys stock pays a dividend once each year, and it just paid a dividend of $0.85 yesterday. The current market price of the
1. Petscan Radiologys stock pays a dividend once each year, and it just paid a dividend of $0.85 yesterday. The current market price of the stock is $12.14. If investors believe that Petscan will increase it dividends by 7 percent per year forever, calculate the required rate of return on Petscans stock?
2. Golden eye issued bond at the coupon rate of 10% and annual coupons. The par value is$1000 and the bond have 5 years to maturity . The yield to maturity on similar debt issued by similar companies is 11%. How much money the company raise with each bond.
3. Solace corporation is raising money for new investments by issuing Corporate bonds. The bonds have the following features
10 years to maturity, par value $1000
8% yield to maturity
12% coupon rate
Coupons paid semiannually
How much can this corporation raise with each bond ?
PLEASE can you answer all the questions now asap
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