1. The Garcia Companys bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 17.8 percent. Assume interest payments are made semiannually.

Determine the present value of the bonds cash flows if the required rate of return is 17.8 percent. (Round factor value calculations to 5 decimal places, e.g. 0.52755. Round other intermediate calculations to 2 decimal places, e.g. 52.75. Round final answer to nearest dollar amount.)

Present value

$

2. The French Thaler and Companys stock has paid dividends of $1.52 over the past 12 months. Its historical growth rate of dividends has been 5 percent, but analysts expect the growth to slow to 2 percent annually for the foreseeable future. Determine the value of the stock if the required rate of return on stocks of similar risk is 10 percent. (Round answer to 2 decimal places, e.g. 527.52.)

Stock value

$

3. The common stock of RMW Inc. is selling at $90 a share. It just paid a dividend of $3. Investors expect a return of 10 percent on their investment in RMW Inc. From this information, what is the expected growth rate of future dividends? (Round answer to 2 decimal place, e.g. 52,75.)

Growth rate

(in %)