Company C has $4 in excess cash, 2 million debt and is expected to have free cash flow of $20 million next year. Its FCF expected to growth at a rate of 3% per year forever. If C's weighed average cost of capital is 10%, and it has 10 million shares outstanding, what should be the price of C's stock? __________________________ Company A just paid an annual dividend of $0. 5 this year, and will pay $0.75 next year, and $2 two years later, then the dividend will grow at 5%peryear. According to the discounted dividend model, what's the value of the stock if r = 7%? __________________ You bought a 5 percent coupon rate, semi annual coupon bond, 10-year maturity for $900. Face value is $1000, what's its field to maturity? (Please keep two decimal points with the percentage, i.e. 5.55%) ___________________. Based on 1), a year later, the bond's YTM goes to 8% what's the bond price at the time? __________________ BIV is the Vanguard intermediate term bond index fund. If the Federal Reserve suddenly plans to lower the federal fund interest rate now, what's going to happen to its price? __________________________________ (True/False) For bonds with the same YTM. same coupon rate, and face value, 30 year coupon bonds are more interest rate sensitive than 20 year coupon bonds. ______________________ (True/False) Zero coupon bond price will eventually converge to the face value of the bond over time