1.Suppose that the current market interest rate is at 5% per annum in semi-annually compounding rate. A convertible bond issued by Study Inc has coupon rate of 5% per annum., a face value of 100, and time-to-maturity of 10 years. The coupon payment will pay to bondholders every 6 months. Bondholders may convert each unit of the bond into 100 shares of Study Inc shares at any time during the life of the bond. If the current stock price of Study Inc is trading at 10 per share, estimate the convexity of this convertible bond.

2.WWW Inc had a current EPS of 10. The dividend payout ratio is at 50% and will remain same. The ROE is at 20% and will remain same. The required rate of return by stockholders is 15% per annum. What's the present value of future growth opportunity for each share (PVGO)?

3.WWW Inc has a FCFE of 1,000 last year. The FCFE will grow by 7% per annum in the future. The required rate of return by equity holders is 11% per annum and the debt amount is 5,000 and the number of outstanding shares is 1,000 shares. Please calculate the firm's stock price.