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Answer the following questions. Table 6-4 or Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Required:
Answer the following questions. Table 6-4 or Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Required: a. Spencer Co.'s common stock is expected to have a dividend of $6 per share for each of the next 9 years, and it is estimated that the market value per share will be $142 at the end of 9 years. If an investor requires a return on investment of 10%, what is the maximum price the investor would be willing to pay for a share of Spencer Co. common stock today? b. Mario bought a bond with a face amount of $1,000, a stated interest rate of 10%, and a maturity date 11 years in the future for $987. The bond pays interest on an annual basis. Three years have gone by and the market interest rate is now 12%. What is the market value of the bond today? c. Alexis purchased a U.S. Series EE savings bond for $100, and six years later received $141.84 when the bond was redeemed. What average annual return on investment did Alexis earn over the six years? Complete this question by entering your answers in the tabs below. Required A Required B Required C Mario bought a bond with a face amount of $1,000, a stated interest rate of 10%, and a maturity date 11 years in the future for $987. The bond pays interest on an annual basis. Three years have gone by and the market interest rate is now 12%. What is the market value of the bond today? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Market value Show less &
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