A share of common stock just paid a dividend of $1 (D_o = $1). If the expected long-run growth rate for this stock is 5.4%, and if investors' required rate of return is 11.4%, what is the stock price per share today?

A company's common stock currently sells for $32 per share. The dividend is projected to increase at a constant rate of 5% per year. The required rate of return on the common stock is 8%. What is the stock's expected price per share 2 years from today?

A 12-year bond has an annual coupon rate of 9%. The par value of the bond is $1,000 and the bond has a yield to maturity of 7%. Which of the following statements is correct?