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8) Miller juice just paid $3 dividend. The company is expected to pay $3.50 dividend next year and $4 in two-years. After that dividends will

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8) Miller juice just paid $3 dividend. The company is expected to pay $3.50 dividend next year and $4 in two-years. After that dividends will grow at 5% forever. If investors want a 12% return on Miller stock, what should be the current stock price of Miller? (2-stage model) 9) Today you have purchased a $1000 PAR bond with 5% coupon, and 10-years maturity for $845. How much capital gains tax will you pay on this bond next year if capital gains tax is 15%? 10) Today you have purchased a $1000 PAR bond with 5% coupon, and 10-years maturity for $1045. How much capital gains tax will you pay on this bond next year if capital gains tax is 15%? 11) what is the YTM of a 15-year, $1,000 bond that is trading at $958 & pays an annual coupon of 12%, every quarter

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