Question
Please answer a-f or none of them. a.Tony's Tire company pays a $1.10 dividend and grows at 3% per year. Given a required rate of
Please answer a-f or none of them.
a.Tony's Tire company pays a $1.10 dividend and grows at 3% per year. Given a required rate of return of 12%, what is the stock price for this company?
b. A bank stock is currently paying $2.53 in dividends per year. The bank grows slowly, at about 1% per year. Given a required rate of return of 12% per year, what is the current stock price?
c. A restaurant chain company named Fatso's Burgers is currently paying out $3.39 per year in dividends and is forecast to grow at 6% per year. Based on a 12% required rate of return, what is the stock price?
d. A bond has a face value of $1,000. The bond matures in 10 years. It has a coupon rate of 8% and pays interest annually. The yield is 9%. What is the price of the bond?
e. A bond has a par value of 1,000. Matures in 20 years. Coupon rate of 11% per year. Annual coupon payments. Yield on this bond is 12%. What is the price?
f. A bond has a face (par) value of 10,000. It matures in 20 years. The bond has an annual coupon of 9%. Based on a market rate (yield) of 7%, what is the current price of the bond?
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