Question 7 Your company pays dividends that are expected to grow at 4 per cent each year. These will stop in year 5, at which point the company will pay out all its earnings as dividends. Next year's dividend is 0.67 and its EPS at the time will be 1.01. If your firm were to distribute all its earnings, it could maintain a level dividend stream of 0.67 per share. Required: If the appropriate discount rate is 9 per cent, how much is the market actually paying per share for growth opportunities? 0 Question 9 The UK government issues a 5 year bond which makes annual coupon payments of 5 per cent and offers a yield of 3 per cent annually compounded. Required: Suppose that one year later the bond still yields 3 per cent. What return has the bondholder earned over the 12-month period? Now suppose that the bond yields 2 per cent at the end of the year. What return would the bondholder earn in this case