15. Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. His broker quotes a price of $1,180. Jim is concerned that the bond might be overpriced based on the facts involved. The $1,000 par value bond pays $120 annual interest payment, and it has 25 years remaining until maturity. The current yield to maturity on smiler bonds is 12 percent. Compute the new price of the bond based on semiannual analysis and comment on whether you think it is overpriced in the marketplace. 16. Haltom Enterprise has had the following pattern of earnings per share over the last three years: Year EPS 2008 $3.00 2009 $3.18 2010 $3.37 The earnings per share have grown at a constant rate and will continue to do so in the future. Dividends represent 25 percent of earnings. a) Project earnings and dividends for the next three year (2011). b) If the required rate of return is 12 percent, what is the anticipated stock price at the beginning of 2011. c) If the required rate of return is 12 percent, what is the anticipated stock price of 2013