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Question 8 Tenet has just paid a dividend of $2. Due to the poor economic condition, Tenet has decided to suspend dividend payment for the

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Question 8 Tenet has just paid a dividend of $2. Due to the poor economic condition, Tenet has decided to suspend dividend payment for the next two years. The company will resume dividend payment in year 3 and is expected to pay a constant dividend of $2 in year 3 and year 4. After year 4, the dividend is expected to grow at a constant rate of 5 percent per year forever. If the required return on this stock is 15 percent, what is the current share price? Question 9 Hydro Dam issued a 20-year maturity bond three years ago. The bond has a face value of $1,000, pay coupon annually and a yield to maturity of 8 percent. Today, after the payment of the annual coupon, the bond is trading at a price of $954.39. What is the coupon rate of this bond

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