a) Drex Ltd has a $100 face value bond with a 4.5% coupon rate. The bond matures in 25 years, and coupons are paid annually. The required rate of return is 6%. (1) Calculate the value of the bond. (ii) Is the bond priced at a discount, par or premium? Explain. (2 marks) (11) List three features that Drex Ltd could attach to this bond issue. (3 marks) (6 marks) c) CuJi Inc just paid a $2.50(Do) annual dividend per share. Investors believe that the dividend is expected to grow at a rate (g) of 2% per annum for the foreseeable future. Assume investors require a rate of return of 5%. (1) Calculate the current price of the stock. (ii) If the stock currently trades at $86, would you buy it? c) TESB Corporation has the following capital structure. Debt Preferred Stock Common Stock (3 marks) (1 mark) Before-tax cost of debt 4%. Corporate tax rate 40%. 6% at par value $20 per share and Floatation cost $4 per share Current price $22 per share Dividend next period (D1) $1.50 per share. Growth rate (g) of dividend 3% Giv