4) Assume that you are considering the purchase of a 20-year, no with an annual coupon rate of 9.5%. The bond has a face value d makes semiannual interest payments. If you require an 9.5% n maturity on this investment, what is the maximum price you shoul pay for the bond? a. $1,140.00 Nadges b. $1,010.00 c. $1,000.00 d. $1,220.00 e. $980.00 5) Dyl Inc.'s bonds currently sell for $970 and have a par value of $1,000. They pay a $65 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,10o. What is their yield to maturity (YTM)? a. 6.83% b. 7.92% c. 5.26% d. 5.87% e. 6.96% 6) Reddick Enterprises' stock currently sells for $50.00 per share. The dividend is projected to increase at a constant rate of 5-50% per year. The required rate of return on the stock, r., is 9.00%. What is the stock's expected price 3 years from today? a. $71.04 b. $71.63 c. $58.71 d. $68.69 e. $61.65 7) You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7-50%, and the cost of retained earnings is 11.50%. The firm will not be issuing any new stock. What is its WACC? a. 8.70% b. 8.87% c. 7.92% d. 7.66% .... ges 1) Assume that you are considering the purchase of a 20-year, noncallable bond with an annual coupon rate of 9.5%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 9.5% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? . $1,140.00 -. $1,010.00 oerp lows olur os - $1,000.00 - $1,220.00ens aunod do bobrvo