Note the following yields: 10 year treasury 2.37%, 10 year AAA rated bond credit spread 0.90% (90 basis points), BBB rated bond credit spread 1.20% (120 basis points). What is the price of a 10 year bond, $1000 par value, with a coupon rate of 6% that pays interest semi-annually and has risk similar to a BBB rated corporate bond?

Suppose Company X has earnings next year of $1.00 and grows earnings by 40% for 2 years and will grow earnings thereafter by 4%. It pays no dividends until year 4, where it will then initiate a 50% dividend payout rate. If the cost of equity capital is 12%, what is the price of the stock?