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Excel Hydro plans to raise $6.2 million to expand their business. To accomplish this, they plan to sell 20-year, $1,000 face value, zero-coupon bonds. The

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Excel Hydro plans to raise $6.2 million to expand their business. To accomplish this, they plan to sell 20-year, $1,000 face value, zero-coupon bonds. The bonds will be priced to yield 9.5%. The company plans on depositing $10,000 a year in real terms into your investment account for the next four years. The relevant nominal discount rate is 7.5% and the inflation rate is 4.2%. 7. Calculate the EPS of the company. 8. Calculate the Present value of the stock. Excel Hydro Inc. has just issued dividends at $2 per share. There are 500,000 shares outstanding. The recently released Income statement shows net earnings of $1200,000 Dividends will grow at the rate of 10% for the next four years. The required rate of return is 12%. 9. What is the minimum number of bonds they must sell to raise the $6.2 million they need? 10. What are the deposits worth in today's dollars

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