Question
1.BMW Group just paid a $7.60 annual dividend, and it expects to pay dividends of $7.60 forever. If BMW Group's required return is 6.50%, what
1.BMW Group just paid a $7.60 annual dividend, and it expects to pay dividends of $7.60 forever. If BMW Group's required return is 6.50%, what would be the value of the stock?
2.Hyundei Motor Group reported EPS of $3.15. If it has a price/earnings multiple of 6 what would be the value of its stock?
3.Wolkswagen Group has an outstanding bond with a par value of $1,000 and a coupon rate of 11%. The bond pays annual coupon payments and it has 9 years left to maturity. If required return is 13% indicate if the bond is selling at a premium or a discount and explain why.
4.Refer to the Wolkswagen bond above. Indicate the yearly payment for every year from year 1 to year 9 on a timeline.
5.Based on the information from question 3, calculate the value for Wolkswagen's bond.
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