Question
question 1 : FIN300 Corporation issued 20-year, noncallable, 8% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest
question 1 : FIN300 Corporation issued 20-year, noncallable, 8% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 6%. What is the current price of the bonds, given that they now have 15 years to maturity?
Question 2 If D 1 = $2, g (which is constant) = 4%, and P 0 = $30.00, then what is the stocks expected dividend yield for the coming year?
question 3
Inc.'s stock has a required rate of return of 12%, and it sells for $85 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D0?
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