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Hello I need help with my accounting chapters 7 and 8 HMW. Excel is fine to use and they are only 5 questions each. ACCT2060

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Hello I need help with my accounting chapters 7 and 8 HMW. Excel is fine to use and they are only 5 questions each.

image text in transcribed ACCT2060 Chapter 7 Homework 1. K & A Company has a level-coupon bond outstanding that pays coupon interest of $100 per year and has 20 years to maturity. The face value of the bond is $1,000. If the yield for similar bonds is currently 14%, what is the bond's current market value? 2. For the K&A Company bond described in Problem 1, find the bond's value if the yield for similar bonds decreases to 8%. 3. Suppose the K & A bond from Problem 1 paid interest semiannually. What is its value if the yield is 14%? 4. A firm issues a bond today with a $1,000 face value, an 6% coupon interest rate, semiannual interest, and 20-year maturity. An investor purchases the bond for $802. What is the yield to maturity (YTM)? 5. Suppose the investor bought the bond described in the previous problem for $1,274. What's the YTM? ACCT2060 Chapter 8 Homework 1. TTK Corp. preferred stock pays a $10 annual dividend per share. What is the price of a share of TTK preferred if similar-risk preferred yields 8%? What is the price if comparable preferred yields 11%? 2. A share of preferred stock with a $12 annual dividend is selling for $75. What is the required rate of return for the preferred stock? 3. Hillard, Inc. just paid a $2 annual dividend on its common stock. The dividend is expected to increase at 8% per year indefinitely. If the required rate of return is 16%, what is the stock's value? 4. The dividend paid this year (Do) on a share of common stock is $10. If dividends grow at a 5% rate for the foreseeable future, and the required return is 10%, what is the value of the stock today? In year 11 (date t = 11)? 5. The current year's dividend (Do) for a share of common stock is $2 and the current price (Po) of the stock is $30. Dividends are expected to grow at 5% forever. What is the rate of return for this stock

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