Good morning,

Could someone help me with these questions please. Thanks. Answers need to be written fully.

Gonzalez Electric Company has outstanding a 10 percent bond issue with a face value of $1,000 per bond and three years to maturity. Interest is payable annually. The bonds are privately held by Suresafe Fire Insurance Company. Suresafe wishes to sell the bonds, and is negotiating with another party. It estimates that, in current market conditions, the bonds should provide a (nominal annual) return of 14 percent. What price per bond should Suresafe be able to realize on the sale?

Wayne's Steaks, Inc., has a 9 percent, noncallable, $100-par-value preferred stock issue outstanding. On January 1 the market price per share is $73. Dividends are paid annually on December 31. If you require a 12% annual return on this investment, what is this stock's intrinsic value to you ( on a per share basis) on january 1?

For this one you can solve only part C.

Just today, Fawlty Foods, Inc.s common stock paid a $1.40 annual dividend per shareand had a closing price of $21. Assume that the markets required return, or capitalization rate, for this investment is 12 percent and that dividends are expected to grow at a constant rate forever. a. Calculate the implied growth rate in dividends. b. What is the expected dividend yield c. What is the expected capital gains yield