8 Question 6: a) The last dividend paid by a firm on its common stock was $2.20. Based on the riskiness of the stock, it is expected it will have a return of 10 percent. If the firm's dividends are expected to have a long-term growth rate of 2 percent, what is the market value of the stock? (3 marks) b) If an investor is considering the purchase of a common stock at the beginning of the year. The dividend at year-end is anticipated to be $2.64 and the market price for the common stock at the end of the year is projected to be $32. If the investor's require rate of return is 9%, what is the value of the security? (3 marks) c) If the cost of preferred stock is 6%, what is the intrinsic value of the preferred stock with an annual dividends of $8.45. (3 marks) d) If you are contemplating a mix of investments. What will be the expected rate of return on your portfolio, if you invest 75% of his funds in the stock of NCB with an expected rate of return of negative (-) 18% and the rest of his funds (25%) in the stock of the Grace Kennedy with expected return of 89%? (4 marks) e) If the Fancy Foot Enterprise issued a $1,000 par value bond with a maturity date of 2044 and a stated coupon rate of 8.5%. On January 1, 2023, the bond had 20 years left to maturity, and the market's required yield to maturity for similar rated debt was 7.5%. If the market's required yield to maturity on a comparable risk bond is 7.5%, what is the value of the bond? (4 marks) f) An corporation issues a bond that matures in 10 years' time and the bond current sells for $935.82. The bond has a face value of $1,000 and an 8 percent annual coupon. What is the bond's current yield and yield to maturity? (3 marks)