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5. HCSH has the following bond outstanding: coupon rate = 5%, years to maturity = 8 years; A similar caliber bond's YTM = 7%. What

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5. HCSH has the following bond outstanding: coupon rate = 5%, years to maturity = 8 years; A similar caliber bond's YTM = 7%. What should be this bond's intrinsic value? 6. HCSH has the following preferred stock outstanding: dividend 6% (=$6); RRR = 7%. What's the maximum you will pay for this PS? 7. HCSH's common stock has just paid $1.00 in dividends. Nine years ago, it paid $.5 in dividends. The same growth rate is expected to continue for a long tin If the RRR on this stock is 12%, what is the intrinsic value? If this is also the equilibrium price, what is the market price of this stock? [To compute g, PV =.5, FV =$1, PMT =0; n=9; I/Y= growth rate=???]

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