a. Golden snitch ltd growth prospects are high for the new few years and it expects to grow at a constant rate of 3.21%. Last week the company paid a dividend of $2.75. If your required rate of return is 6.80%, what is the maximum prive that you would be willing to pay for this companys shares?

b) Polujuice forecasts it share price will increase to $37.12 a year from now. Next year it is expected to pay a dividend of $1.28. The required rate of return is 8.3%. Apply the constant growth divident mdpde; tp find the curren t price of this share.

c) Horcrux intends to purchase a $1000 10 year bond with a 5.45% coupon that will be paid semi annually. The current mater rate for similar bonds is 5.76%.

i. what is the maxomim price he should pay for this bond>

ii. is the bond selling at a discount or at a premium an why?

iii. if the company decided to issue a zero coupon bond and the market rate is 6.55% what will this bonds price be?

d) Hagrid made an investment in real estate. After 5 years, he predicts that the house will need to be renovated at a cost of $55,000. He plans to set aside an equal sum at the end of each fortnight earning an annual return of 5.4% to pay these expenses. How much does he need to save each fortnight.

e) you are taking out a loan to travel. how much ccan you borrow now if you finance the cost over 4 years at a rate of 6.5% pa and can make payments of $350 each month starting one month from now