Please do not use excel and show formulas

1.You have a bond with face value of $100, coupon rate of 4.50%, annual coupon payments, maturity of 7 years, and a yield to maturity of 6.00%. This bond allows the issuer to not make coupon payments for rst the 2 years. Find its price.

(a) $93.68 (b) $91.63 (c) $93.68 (d) $83.38

2.For the past 4 years, General Motors (ticker GM) has the following annual returns: -17%, 17%, 1%, -1%. If you were invested for the full four years, what was your holding period return?

(a) 0.97% (b) 0.00% (c) -2.90% (d) 18.17%

3.ABC Corp. has a share price of $9.00 today. In one year, it is expected ABC Corp. will pay dividend of $1.00 and its stock price is expected to be $11.00. What is ABC Corp.'s equity cost of capital (rE)?

(a) 22.222% (b) 13.333% (c) 11.111% (d) 33.333%

4.ABC Corp. will pay a dividend (at time 1) of $2.6. It is expected the company will increase its dividend by 2.50% per year forever. If the ABC Corp.'s equity cost of capital is 9.00%, what is the price of its stock at time 3?

(a) $43.08 (b) $40.00 (c) $28.89 (d) $41.00

5.Suppose Oil Company XYZ plans to pay a dividend of $3.50 in one year (this is time 1), $1.50 in two years, and then increase this dividend by 12.00% every year (i.e. the dividend at time 3 is $1.501.12 ) until time 14, after which the company will cease to operate and no more dividends will be paid. If the required rate of return on this company is 8.00%, what is its current price?

(a) $25.91 (b) $-31.48 (c) $26.17 (d) $24.23