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8) The Nimnim Company just paid an annual dividend of $1.20. If you expect a constant growth rate of 3% and have a required rate
8) The Nimnim Company just paid an annual dividend of $1.20. If you expect a constant growth rate of 3% and have a required rate of return of 13%, what is the current stock price according to the constant growth dividend model?
9) a) In 2012 Kabir Inc paid $1.25 as dividend. In the most recent dividend in 2019 the dividend was $1.80. The number of years between these two dividends (n) is 7 years. If the required return of 12.21%. What is the current stock price if we anticipate dividends stopping in 10 years (because the company will go bankrupt)? B) if the company pays the dividends forever (does not go bankrupt) what is the current stock price?
10) Calculate the price of a bond that matures in 8 years, has a face value of $5.000, a coupon rate of 2% (paid semiannually) if the market interest rate is 1%. What is the price of the bond if the market interest rate drops to 0.5%?
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