1. The Chilton Oil Co. will pay a dividend of $2.50 per share on its common stock next period. The company is expected to maintain a constant 6% growth rate in its dividends indefinitely. If the stock sells for $50 per share, what is the company's cost of equity?

A.11.30%

B. 11.00%

C. 10.00%

D. 10.30%

E. 12.40%

2. Suppose a stock had an initial price of $54 per share, paid a dividend of $1.75 per share during the year, and had an ending share price of $54. What is the holding period return?

A. -11.57% B. -14.81% C. 3.24% D. -8.23% E. 20.37%

3. Bond A Bond B

Face Value 1000 1000

Semi-annual Coupon 55 60

Years to Maturity 20 20

Price 960.26 ?

If these bonds are identical except for coupons and prices, what is the price of bond B?

A. $1000.00

B. $ 841.79

C. $ 925.31

D. $1037.86

E. $1079.63

PLEASE SHOW FINANCIAL WORK