1-The Davis Co. has issued a preferred stock that pays a dividend of $7.25 per year. If the stock currently sells for $96.35 per share, what is the required return? What would be the required return if the stock price was $107.80?

2-Eunice is looking at a bond that has a 6.5% coupon and will mature in 7 years. If her goal is to earn a YTM of 8% what would she be willing to pay today to purchase the bond?

3-Darcie is looking at a bond that she can buy for $809.50. It matures in 15 years and has a coupon rate of 7.5%. If she were to purchase this bond what yield to maturity would she earn? assuming annual interest payments and second, assuming semi-annual payments

4-Chuck wants to earn 7.5% on his zero coupon bond that matures in 19 years. It has a face value of $1,000. What would he be willing to pay today?

5-Xena owns a bond with an 8.5% coupon. She bought it for $1,050.00. She could sell it today based on a current yield of 8