Question
Marks, Inc., expect a dividend of $5.20 per share in one year from now. The rate of return is 13% and the growth rate is
Marks, Inc., expect a dividend of $5.20 per share in one year from now. The rate of return is 13% and the growth rate is 6.8%.
3pt
- How much would you be willing to pay for Marks stock today?
- If the current market price of Marks stock is $88.23, would you be willing to buy it? Why?
Micas has a bond outstanding. The coupon rate is 5.4% and the coupons are semiannually. The current value of the bond is $895. The time to maturity is 7 years.
3pt
- Find the yield to maturity on this bond.
- Find the yield to maturity on this bond.
Find the effective rate of return on this bond.
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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
1292200743, 1292200766, 9781292200767, 978-1292200743
