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10. A common share just paid a dividend of Do = $1.75. The required rate of return is 12.0%, and the constant growth rate is
10. A common share just paid a dividend of Do = $1.75. The required rate of return is 12.0%, and the constant growth rate is 4.0%. What is the current share price? 11. A share has a required rate of return of 10.50% and sells for $67.50 per share. The dividend is expected to grow at a constant rate of 7% per year. Find the Last dividend Do. 12. Consider the following portfolio. Share X Y Z Beta 1.35 0.40 1.12 Value of Investment in Portfolio 28,000 33,000 41.000 4 a) Compute the weighted value of beta for the portfolio. 3 13. What metric is the most relevant measure of any stock/s risk? Explain your answer. 14. You purchased a bond that matures in 15 years. The bond has a face value of $1,000 and a 7.5% annual coupon. Payments are semiannual. The bond has a current yield of 5.4%. Find the price of the bond
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