Grow On, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $5.90. You believe that dividends will grow at a rate of 22% per year for three years, and then at a rate of 8% per year thereafter. You expect the stock will sell for $44.50 in three years. You expect an annual rate of return of 21% on this investment. If you plan to hold the stock indefinitely, what is the most you would pay for the stock now? $68.23 $59.52 $43.11 $50.26 $73.87 a XZYY, Inc. currently has an issue of bonds outstanding that will mature in 34 years. The bonds have a face value of $1,000 and a stated annual coupon rate of 18% with annual coupon payments. The bond is currently selling for $1114. The bonds may be called in 4 years for 121% of par value. What is your expected quoted annual rate of retum if you buy the bonds and the company calls them when possible? 17.81% 16.15% 19.58% 14.79% O 12.11% Question 14 (4 points) Listen XZYY Inc. currently has an issue of bonds outstanding that will mature in 33 years. The bonds have a face value of $1,000 and a stated annual coupon rate of 19% with quarterly coupon payments. The bond is currently selling for $1180. The bonds may be called in 5 years for 121% of par value. What is the quoted annual yield-to- maturity for these bonds? 17.61% 1.4.02% 16.77% 16.44% M16 6094