Question
I need HELP ASAP Please!! 1. Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual
I need HELP ASAP Please!!
1. Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 24 percent a year for the next 4 years and then decreasing the growth rate to 5 percent per year. The company just paid its annual dividend in the amount of $1.20 per share. What is the current value of one share of this stock if the required rate of return is 9.75 percent?
$16.94
$15.46
$17.80
$17.37
$13.75 6.
Miller Brothers Hardware paid an annual dividend of $1.45 per share last month. Today, the company announced that future dividends will be increasing by 2.80 percent annually. If you require a 9.0 percent rate of return, how much are you willing to pay to purchase one share of this stock today?
$51.79
$25.49
$53.24
$22.59
$24.04
7. You find a zero coupon bond with a par value of $25,000 and 18 years to maturity. If the yield to maturity on this bond is 3.9 percent, what is the price of the bond? Assume semiannual compounding periods.
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