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CONS, Inc. common stock is currently selling for $10 per share, is expected to pay a $1.70 dividend, and sell for $14.30 one year from

  1. CONS, Inc. common stock is currently selling for $10 per share, is expected to pay a $1.70 dividend, and sell for $14.30 one year from now. What are the dividend yield, growth rate, and total rate of return?
  2. Sky, Inc. paid a dividend of $4.00 per share on its common stock yesterday. Dividends are expected to grow at a constant rate of 10% for the next three years, at which point the dividends will begin to grow at a constant rate indefinitely. If the stock is selling for $60 today and the required return is 11%, what it the expected annual dividend growth rate after year three?
  3. JCT Inc. just issued $1,000 par 30-year bonds. The bonds sold for $638.18 and pay interest semiannually. Investors require a rate of 11% on the bonds. What is the bonds' coupon rate?
  4. SOSU, Inc. just issued $1,000 par 20-year bonds. The bonds sold for $1006 and pay interest semiannually. Investors require a rate of 6.59% on the bonds. What is the amount of the semiannual interest payment on the bonds?

  5. solutions must be clear and in detail. i.e., PMT=, FV=, PV= etc

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