a$)$ Golden Sphere Corporation has a $$10000$ par value bond with a $4\%$

coupon rate. The bond matures in $10$ years. Suppose coupons are paid

annually. The required return of the bond is $6\%.$

$($i$)$ Compute the value of the bond.

$($ii$)$ Is the bond priced priced at a discount, par or premium?

Explain.

b$)$ GoodApps Inc just paid a $$2\mathrm{.}25(D_0)$ annual dividend per share.

Investors believe that the dividend is expected to grow at a rate $(g)$ of

$3\%$ per annum for the foreseeable future. Assume investors require a

rate of return of $8\%.$

$($i$)$ Calculate the current price of the stock.

$($ii$)$ If the stock currently trades at $$48,$ would you buy it$?$

c$)$ PrimMex Ltd has the following capital structure.

$($i$)$ Calculate the cost of debt.

$($ii$)$ Calculate the cost of preferred stock.

$($iii$)$ Calculate the cost of common stock.