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Part 1. COMPUTATIONAL ANALYSIS Direction: In each of the problems below, provide the details/data required. 1. Companies have two options to raise capital i.e. using stock or by issuing bonds. Which method is most appropriate to raise capital? (5 marks) 2. Casino Co. is expected to pay a dividend of $6 per share at the end of year one and these dividends are expected to grow at a constant rate of 8% per year forever. If the required rate of return on the stock is 20%, what is the current value of the stock today? (5 marks) 3. WorldTour Co. has just now paid a dividend of $6 per share (D.), the dividends are expected to grow at a constant rate of 5% per year forever. If the required rate of return on the stock is 15%, what is the current value on stock (after paying the dividend)? (5 marks) 4. Mcom Co. is expected to pay a dividend of $4 per share at the end of year one and the dividends are expected to grow at a constant rate of 4% forever. If the current price of the stock is $25 per share, calculate the required rate of return or the market capitalization rate for the stock