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Please answer all 3 and show work, I am lost, thank you Page |5 3. A twenty-year bond with a 8% coupon rate and a

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Please answer all 3 and show work, I am lost, thank you
Page |5 3. A twenty-year bond with a 8% coupon rate and a face value of S 1000 makes semi-annual coupon payments. Required return for bonds of equivalent risk is 10%. Calculate the market value of the bond. (10 pt.) 4a. You are contemplating buying some stocks of E-FIN.com which. The firm's most recent annualized dividend is $2.20 per share and this is expected to grow at 4% perpetually. Investors in similar firms in the industry require 12% return. Using the Gordon growth model, calculate its current price. (6 pt.) 4b. The current price of ABC stock is S50.00. Dividends are expected to grow at 6% indefinitely and the most recent dividend was $2.20. What is the required rate of return on ABC stock? (4 pt.)

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