amazo 6, 7, 8, 9

Question 6 A stock is expected to pay a dividend of 2 at the end of the year. The required rate of return is 12%, and the expected constant growth rate is 4%. What is the stock's current price? (5 points)

Question 7 A stock currently sells for 65 per share. The market requires a return of 11 percent on the firms stock. If the company maintains a constant 5 percent growth rate in dividends, what was the most recent dividend per share paid on the stock? (10 points)

Question 8 A company just paid a dividend of 2.25 per share. Analysts expect the company's dividend to grow by 20% in Year 1, by 10% in Year 2, and by a constant rate of 5% in Year 3 and thereafter. The required return on this stock is 8.50%. What is the best estimate of the stocks current market value? (15 points)

Question 9 Define important bond features and what they mean (5 points). Describe bond ratings and what they mean (5 points).

Explain how the stock markets work (5 points). Contrast features of stock securities with bond securities (5 points).