12.

Sholve Corp. currently offers annual dividends of $2.97, is expected to offer $2.64 per share in dividends over the next year, and $4.22 per share in dividends the year after that. At the end of the second year, the stock is expected to sell for $50.37 per share. If your required rate of return is 12%, how much are you willing to pay for the stock today? Round to two decimal places (Ex. $0.00). (Hint: are dividends growing constantly?)

14.

A corporate bond has 16 years left to maturity. It offers a coupon rate of 7% per year (paid semiannually) on a $1,000 par value. If it is currently selling in the market for $980, what is its yield to maturity?

		10.02%
		9.55%
		8.43%
		7.21%

16.

Haswell Enterprises' bonds have a 22-year maturity, a 9.6% coupon, and a par value of $1,000. The going interest rate (rd) is 13.1%. Assuming semiannual compounding, what is the bond's price? Round to two decimal places (Ex. $000.00)