1. QRS corporation has declared dividend for January 2019 of P20 per share and expected to grow at a rate of 8% the following year and 7% on the succeeding year. Stockholders of QRS Corporation expect a return of investment of 12%. Determine the value of a stock of QRS corporation.

2. Compute the current yield of DEF corporate bonds with a coupon rate of 11% and currently selling at a premium of 120%. Assume that the par value of the bond is 90 000.