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a) What is the nominal rate of return on the common stock of Mountain Unequipped Inc. if its real rate of return is 9.25% and

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a) What is the nominal rate of return on the common stock of Mountain Unequipped Inc. if its real rate of return is 9.25% and inflation rate is 5.6%? b) Macro Corporation issued 50-year bonds that have a coupon rate of 6% paid semi- annually and a face value of $1000. The bonds were issued at 97% of its face value. Given this information, calculate the yield to maturity. I c) Suppose that you have just purchased a share of stock for $22.51. The most recent dividend was $1.50 and dividends are expected to grow at a rate of 5% indefinitely. What must your required return be on the stock? d) Winter Green Decors announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $0.40 a share. The following dividends will be $0.60, $0.85, and $1.00 a share annually for the following 3 years, respectively. After that, dividends are projected to increase by 2% per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return 10%

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