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QUESTIONS 1. The information about the firm and the market in year 2022 are given below: NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE

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QUESTIONS 1. The information about the firm and the market in year 2022 are given below: NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS. a) Compute the P/E ratio, PEG ratio and PVGO. (45p) b) Compute the price ( P) and eamings (E) per share. (20p) 2. Consider a bond paying a coupon rate of 12% per year quarterly when the market interest rate is only 6% per quarter period. The bond has 5 years until maturity. NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS. a) Compute the bond's price for today and 3 months from now after the next coupon is paid. (25p) b) What is the total (3-month) rate of return on the bond? (10p)

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