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Please show step by step using BAII Plus Calculator Question 7 Rates of Return on Stock [2 points]: Nancy Cotton bought NuTalk for $12 per
Please show step by step using BAII Plus Calculator
Question 7 Rates of Return on Stock [2 points]: Nancy Cotton bought NuTalk for $12 per share. One year later, Nancy sold the stock for $21 per share, just after she received a $0.60 cash dividend from the company. What total return did Nancy earn? What was the dividend yield and the capital gains yield?
Question 8 - Constant growth valuation [2 points]: A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 10%, and the constant growth rate is g = 4.0%. What is the current stock price?
Question 9 - Constant growth rate [2 points]: Gay Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $32.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the expected growth rate?
Question 10 Bond yield [2 points]: Suppose that you read in The Wall Street Journal that a bond has a par value of $100, a coupon rate of 9 percent, a price of $71.375, and pays interest annually. What would be the bond's current yield?
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