One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 6.2% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity? Select the correct answer. O O O O O a. $1,067.13 b. $1,078.45 c. $1,072.79 d. $1,069.96 e. $1,075.62 CMS Corporation's balance sheet as of today is as follows: $10,000,000 Long-term debt (bonds, at par) Preferred stock Common stock ($10 par) Retained earnings Total debt and equity 2,000,000 10,000,000 4,000,000 $26,000,000 The bonds have an 9% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt? Select the correct answer, O O O O O a. $8,279,512 b. $8,280, 305 c. $8,277,924 d. $8,278,718 e. $8,281,099 5-year Treasury bonds yield 4.1%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.4%. What is the real risk-free rate, r*? Select the correct answer. 10 a. 0.56% O b. 1.80% O c. 1.18% O O d. 0.87% e. 1.49% A stock just paid a dividend of Do = $1.50. The required rate of return is rs = - 7.0%, and the constant growth rate is g = 4.0%. What is the current stock price? Select the correct answer. O a. $56.24 b. $52.00 O c. $54.12 O d. $53.06 O e. $55.18 $39.50 per share is the current price for Foster Farms' stock. The dividend is projected to increase at a constant rate of 5-50% per year. The required rate of return on the stock, rs, is 9.00%. What is the stock's expected price 3 years from today? Select the correct answer. O a. $47.04 b. $47.37 c. $46.38 d. $47.70 e. $46.71 O O Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 20.00% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price? Select the correct answer. O a. $38.17 O b. $41.77 O c. $39.37 O d. $40.57 O e. $42.97