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NO EXCEL. CLEAR SIMPLE LANGUAGE a) Briefly describe the benefits you may have from the valuation of financial assets like stock and bonds? b) BATBC's

image text in transcribedNO EXCEL. CLEAR SIMPLE LANGUAGE

a) Briefly describe the benefits you may have from the valuation of financial assets like stock and bonds? b) BATBC's current stock price is Tk. 680 and its last dividend was Tk. 17 per share. The company's required rate of return is 12.5 %. Dividend payout ratio of this company is 18% and the return on equity or reinvestment rate is 16%. i) Determine the true value/intrinsic value of this stock ii) Make your investment decision Rahman corporation issued 10% coupon bond with a face value Tk. 12,000 at a maturity period of 15 years. Interest is paid annually. i) What will be the value of the bond when the going rate of interest is 8%, 10%, 12%? ii) Is this the bond selling at premium, discount or per value at those interest rate

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