21. You expect your firm to experience a rapid growth of 12% per year for two years and then slow to a constant growth of 6% per year. The most recent annual dividend paid by your firm was $1. The market's required rate of return on your common equity is 9%. What is today's value of your firm's common stock? A. $37.39. B. $31.25. C. $27.46. D. $46.25. E. None of the above. The following information concerns Questions 22-23. You are considering the purchase of a bond with a semiannual coupon of $36.00, ten years to maturity, a face value of $1,200.00, and a current market price of $1,200.00. 22. At what price will the bond sell in the market in 6 months, immedi- ately after the first coupon payment, if the stated annual yield on the bond in six months) is 3 percent? A. $1,390.50. B. $1,580.67. C. $1,465.68. D. $1,495.72. E. None of the above. 23. If you were to buy the bond now and sell it after 6 months, what rate of return would be earned over the six-month period? A. 37.34% B. 32.67% C. 30.32%. D. 29.64% E. None of the above. The following information concerns questions 24-25. Suppose you need to borrow $400,000 to buy a house and the Bank of Montreal offers you a five-year-term for a mortgage with an annual percentage rate (APR) of 7.252% to be amortized over 25 years of monthly payments. (Hint: use 6 decimal places for your calculations.) 24. Based on the above information, what is the effective monthly rate on the loan, which is used to calculate the monthly payment? (Hint: use 6 decimal places for your calculations.) A. 0.9839%. B. 0.8137% C. 0.6834%. D. 0.3953% E. None of the above. 25. Based on the above information, what is your monthly mortgage pay- ment? (Hint: use 6 decimal places for your calculations.) 5 5 A. $2,963.86. B. $1,863.86. C. $2,653.26. D. $2,195.35. E. None of the above. 26. If the interest rate this year is 8 percent, the interest rate next year will be 10 percent, and the interest rate in the third year will be 6%, what is the future value of $1 after 3 years? A. $2.188. B. $1.9418. C. $1.188. D. $0.8418. E. None of the above. The following information concerns questions 2728. Suppose you borrowed $25,000 from a bank to buy a new car. The loan has a 5-year amortization period and charges 8% annual percent- age rate (APR). You are required to make equal monthly mortgage payments. (Hint: use 4 decimal places for your calculations.) 27. Based on the above information, what is effective annual interest rate on the loan? (Hint: use 4 decimal places for your calculations.) A. 8.21%. B. 9.21% C. 6.21% D. 4.89%. E. None of the above. 28. Based on the above information, what is your monthly mortgage pay- ment? (Hint: use 4 decimal places for your calculations.) A. $447.96. B. $326.91. C. $580.88. D. $604.50. E. None of the above