13. What is the current share value of L-S Mining Company's stock to an investor who has a required rate of return of 28 percent? The current dividend is $3.75(D0) and the dividends are expected to grow 7 percent per year for 5 years. At the end of 5 years, the investor expects to sell the security for $48.

14. The World Tobacco Company is expected to pay a dividend of $4 per share at the end of year 1(D1) and the dividends are expected to grow at a constant rate of 9% forever. If the current price of the stock is $25 per share, calculate the expected return or the cost of equity capital for the firm.

15. Tyson Inc. is planning to offer a $1,000 par value 18-year maturity bond with a coupon interest rate that changes every 6 years. The coupon rate for the first six years is 8.75 percent, 10.75 percent for the next 6years, and 12.75 percent for the final 6 years. If you require an 18 percent rate of return on a bond of this quality and maturity, what is the maximum price you would pay for the bond? (Assume interest is paid annually at the end of each year.)

16. What is the value of a Saturn Companys bond that has a 11.25 percent coupon, pays interest semiannually, and has 10 years to maturity, if the required rate of return is 16 percent?