Question
a.YP Cheang Corporation issued a 20 years, non-callable, 7.5 percent annual coupon bonds at their par value of RM1000 one year ago. Today, the market
a.YP Cheang Corporation issued a 20 years, non-callable, 7.5 percent annual coupon bonds at their par value of RM1000 one year ago. Today, the market interest rate on these bonds is 5.5 percent. What is the current price of the bonds, givens that they have 19 years to maturity?
b. Penasonik Berhads bonds make an annual coupon interest payment of 7.35 percent. The bonds have a par value of RM1000, current price is at RM1130, and mature in 12 years. What is the yield to maturity on these bonds?
c. Hunda Corporations expected year end dividend amounting to RM1.60, and its required return is 11 percent. The dividend yield is 6 percent and its growth rate is expected to be constant in the future. What is Hunda Corporations expected stock price in 7 years?
d. The Airasiang Berhad is expected to pay a dividend of RM1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6 percent per year in the future. The companys beta is 1.15, the market risk premium is 5.5 percent and the risk free rate is 4 percent. What is the Airasiang Berhads current stock price?
e. If the dividend already paid at RM1.75, the growth which is constant at 3.6 percent, and the price of the stock is RM32.00, what is the stocks expected total return for coming year?
f. Makan Makan Incorporations has a stock with a required rate of return of 10.25 percent, and it sells for RM57.50 per share. The dividend is expected to grow at a constant rate of 6 percent per year. What is the expected year end dividend for this stock?
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