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Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different types of Bonds and Stocks. After studying the
Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different types of Bonds and Stocks. After studying the market, he decided to choose 3 bonds and 3 stocks. Given the following information: Bond Number of Bonds 21 18 22 ABC X Y N Number of Stock 2100 2500 Type Discount Bond Par Bond Premium Bond 2900 Dividends Type Stocks: The financial manager wants to buy Stocks X, Y, Z and he decided to buy different numbers from each stock Stock Growth Zero Growth Constant Growth Coupon rate 4.0% Constant Growth 9.3% Required Return 10% 1394 YTM 8.9% 13% 6.3% Maturity 12 years 17 years 16 years 3% Face Value 1000 1000 1000 Dividends 0 Dividends 1 3.2 18 Calculate the total amount of investment the company needs to buy the 3 bonds and the 3 stocks. Total Amount
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