9.

Ayayai Corp. has a current stock price of $32.08. The company paid $1.13 in dividends this year and dividends are expected to grow at 6% per year. If you have a required return of 11%, what is Ayayai Corp. worth to you?

$21.84.

$32.08.

$36.28.

$23.96.

14.

What is the fair market value of a bond with the following features: (a) par value of $1000, (b) coupon payment of $30, and (c) 5-year maturity? Assume that current interest rates are 3%.

$1000.00.

$1055.00.

$1075.50.

$995.00.

12.

Chris recently purchased a bond for $1190. The bond has a par value of $1000 and a coupon rate of 2.00%. Based on this information, you know that Chriss current effective interest rate earned on the bond is _______________ and when the bond matures he will receive _________________:

1.68%; nothing.

2.00%; $1190.

2.00%; $1000.