Please demonstrate all steps to prevent mark reduction.

Q7. McDonalds recently paid a dividend of $2 per share. and sales revenue is expected to grow at 3%. How much should you pay today to purchase one share of this stock if you wanted to earn a return of 9%? What is your recommendation assuming that the stock is currently trading at $30?

Q8. Amazon Co. is expected to pay an annual dividend of $7 in the upcoming year. Dividends are expected to grow at a constant rate of 15% per year. The risk-free rate of return is 6% and the expected return on the market portfolio is 14%. If you knew that Amazon has a beta of 3, calculate the intrinsic value of its common stock.

Q9. If a $1,000 par value bond has a coupon rate of 6% with interest paid semi- annually, a maturity of 12 years, and a yield-to-maturity of 7%, what is the current price of this bond?

Q10. If a $1,000 face value zero coupon bond has a maturity of 15 years and a yield- to-maturity of 6%, what is the current price of this bond?