answer questions 13 and 8 for a like thank you.

course: consumer behavior

Question 13 (0.2 points) Find the price today of a young growth company's stock that is not expected to pay any dividends for the next nine years, but ten years from now the stock is expected to pay a dividend of $4 per share and then grow this dividend by 3% per year forever. Investors expect a 10% annual return on this stock. Your Answer: Answer Hide hint for Question 13 First find the expected price in 9 years. P9=D10/(r-g) Then find the price today. PO=P9/(1+r)^9 Question 8 (0.2 points) Bavarian Sausage just issued a 8-year 7% coupon bond. The face value of the bond is $1,000 and the bond makes annual coupon payments. If the bond is trading at $1044,14, what is the bond's yield to maturity?(Enter your answers as a decimal rounded to 4 decimal places, not a percentage. For example, enter 0.0843 instead of 8.43%) Your Answer: Answer Hide hint for Question 8 N=# of coupons 1/Y= yield to maturity ? PV=-bond price (make it negative, indicating spending money to buy the bond) PMT= coupon payment = coupon rate face value of 1000 FV= face value of 1000 CPT, 1/Y to get the answer for yield to maturity. If it appears as 5.6, for instance, then the answer is 5.6% or 0.056