A stock just paid a dividend of $2. Due to the young age of the firm, you expect it to experience 20% growth in year one, 10% growth in year 2, and then constant growth of 5% starting in year 3. If you require a return of 12%, how much should you pay for this stock? QUESTION 2 A bond currently has a stated price of 140. It has 11 years left to maturity and a stated coupon rate of 8%. Coupon payments are made semiannually. If you purchase the bond today, what YTM will you earn? QUESTION 3 Assume that you would like to earn a 6% increase in purchasing power when investing. You expect inflation to be 3% over the next year. What nominal rate should you demand? QUESTION 4 You are considering purchasing a bond that was issued 8 years ago and has 12 years left to maturity. This bond has a stated coupon rate of 12%. You would like to earn a return of 10%. If payments occur semiannually, how much are you willing to pay for this bond