6. A firm will pay a dividend of $1.36 next year. The dividend is expected to grow at a constant rate of 5.00% forever and the requried rate of return is 15.00%. What is the value of the stock?

7. A firm just paid a dividend of $1.36. The dividend is expected to grow at a constant rate of 5.00% forever and the required rate of return is 15.00%. What is the value of the stock?

15. The 10 yesr treasury Note has a YTM of 2.00%. The table below shows the default risk premiums demanded by the market for companies with various credit ratings. Suppose a company with each credit rating needs to raise $20 million in debt and that each company plans to issue a 10- year, semi-annual pay bond with a coupon rate of 3.00%. How many bonds will each company have to sell? What are the total payments each company must make every six months for the next ten years? What is the final payment each must make?

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