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please help i am struggling lots in this course, please show work too 1. (6 points) Write 'T' if the statement is true and 'F'

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please help i am struggling lots in this course, please show work too

image text in transcribed
1. (6 points) Write 'T' if the statement is true and 'F' if the statement is false. Explain why. a) When comparing two bonds with the same characteristics, the longer the time-to-maturity, the higher the interest rate risk. b) If market interest rate increases shortly after the bond is issued, the bond's coupon rate will increase, and its price goes down. 2. (7 points) Ted's Co. offers a six-year semi-annual coupon bond. The market interest rate is 10% annually. The current price of this bond is $911.52. What is the coupon rate? 3. (8 points) A firm is expected to increase dividends by 20% in the first year, by 15% in the second year, and by 5% in the third year. After that, dividends will decrease at a rate of 2% per year indefinitely. If the last dividend was $1 and the required return is 20%, what is the price of the stock? 4. (3 points) Estimate the sustainable growth rate (g) of a firm that sells for $40 per share, is expected to provide a dividend of $2.90 next year, and recently has been providing 8% required returns on its stocks (r=8%)? 5. (6 points) ZZZ Research projects a return on equity of 30%. Management plans to plow back 30% of all earnings into the firm. Earnings this year will be $5 per share, and investors expect a 15% rate of return on the stock (r=15%). What is the present value of growth opportunities

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