1.)Colgate-Palmolive Company has just paid an annual dividend of $ 1.76Analysts are predicting dividends to grow by $0.12 per year over the next five years. After?then, Colgate's earnings are expected to grow 5.7% per?year, and its dividend payout rate will remain constant. If?Colgate's equity cost of capital is 8.5% per?year, what price does the?dividend-discount model predict Colgate stock should sell for?today?

The price per share is

?$nothing.

?(Round to two decimal?places.)

2.) Summit Systems will pay a dividend of $1.47 one year from now. If you expect?Summit's dividend to grow by 5.5% per?year, what is its price per share if its equity cost of capital is 11.9%??

The price per share is

?$nothing.

?(Round to the nearest?cent.)

3.) Assume?Evco, Inc., has a current stock price of $59 and will pay a $2.10 dividend in one?year; its equity cost of capital is 11%. What price must you expect Evco stock to sell for immediately after the firm pays the dividend in one year to justify its current?price?

The expected price is

?$nothing.

?(Round to the nearest?cent.)

4.) Suppose a 55?-year, $1,000 bond with annual coupons has a price of $1,000 and a yield to maturity of 6%. What is the?bond's coupon?rate?

The coupon rate is

nothing?%.

?(Round to two decimal?places.)

5.) Suppose a 10?-year, $1,000 bond with a 8% coupon rate and semiannual coupons is trading for a price of $941.97.

a. What is the?bond's yield to maturity?(expressed as an APR with semiannual?compounding)?

b. If the?bond's yield to maturity changes to 8% APR, what will the?bond's price?be?

6.) A 10?-year bond with a face value of $1,000 has a coupon rate of 10.50%?, with semiannual payments.

a. What is the coupon payment for this?bond?

b. Enter the cash flows for the bond on a timeline.

7.) Which do you?prefer: a bank account that pays 8% per year?(EAR) for three years?or:

a. An account that pays 4% every six months for three?years?

b. An account that pays 12% every 18 months for three?years?

c. An account that pays 0.8% per month for three?years?

a. An account that pays 4% every six months for three?years?

If you deposit $1

into a bank account that pays 8% per year for three?years, you will have

?$nothing.

?(Round to five decimal?places.)