a). Apple has issued a 25-year, 4 percent, semiannual bond 7 years ago. The bond currently sells for 98 percent of its par value. What is the bonds aftertax yield if the company's tax rate is 21 percent?

b). Upped Inc. paid an annual dividend of $1.78 a share last year. The company is planning on paying $1.92, $2.21, and $1.63 a share over the next 3 years, respectively. After that, the dividend will be constant at $3 per share per year. What is the intrinsic value of this stock today if the firms cost of equity is 10 percent?

c). The Nina may company is expected to pay dividends that will grow at a 21% rate from year 1 to year 4, with the growth rate declining to a constant 2% from year 5 onwards. Dividends are paid annually. The discount rate is 10% and the company just paid a $5.10 dividend. What is the current intrinsic price of the stock for this firm?

d). Using the dividend growth model, explain why a firm would be hesitant to reduce the growth rate of its dividends.