do all

Part II - answer the following questions SHOWING ALL WORK (10 points each) 1. Calculate the stock value for the following: a. Assuming a return on stocks of 13%, what is the value of a firm that pays a current dividend of $4.95 and will grow at 8% forever? b. Assuming a return on stocks of 17%, what is the value of a company that pays a fixed dividend of $3.05 forever? c. Assuming a return on stocks of 19%, what is the value of a company that pays a current dividend of 3.20 and will grow at 7% for 3 years and then 2% forever? 3. Construct a currency swap based on the info below: a. Calculate the price of a 4% coupon bond with 4 year maturity and yield 7% Calculate the duration of the bond in question #2. Calculate (TWO TIMES) the \% change in price (from above) and the new dollar price for a bond with the following data: Duration =9.48 change in ytm =25 bips AND + 75 bips Old px=$936