Question
please help me figure out these questions,thanks a lot. 1.Growing Real Fast Company (GRF) is expected to have a 25 percent growth rate for the
please help me figure out these questions,thanks a lot.
1.Growing Real Fast Company (GRF) is expected to have a 25 percent growth rate for the next four years (affecting D1, D2, D3, and D4).Beginning in year five, the growth rate is expected to drop to 3.3 percent per year and last indefinitely.If GRF just paid a $9.00 dividend and the appropriate discount rate is 14.7 percent, then what is the value of a share of GRF? Enter your answer to two decimal places.
2.You are planning on buying $100,000 face value of Australian Commonwealth Government Bonds.The bonds mature on 15 February 2022 and have a coupon rate of 4.75%.If your purchase will settle on 27 April 2012, and the quoted yield for the bond is 5.13%, what is the cash price of the bonds to the nearest dollar?
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