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.. ROGERS 10:15 AM @ 29% Inbox OC Inc. $1,000, 9% (coupon rate) bonds are trading at $1,432 per bond. The bonds pay interest semiannually

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.. ROGERS 10:15 AM @ 29% Inbox OC Inc. $1,000, 9% (coupon rate) bonds are trading at $1,432 per bond. The bonds pay interest semiannually and mature in 8 years. Compute the yield-to- maturity on these bonds. (2 marks) b) Apple Company has preferred shares that pay a $6.50 dividend per share. Preferred shareholders require an annual rate of return of 10%. Compute the expected price per preferred share. (2 marks) c) Finnish Corp paid a $5 per common share dividend last year. Common shareholders require an annual rate of return of 10% and the company is expected to grow at a constant rate of 4%. Compute the expected price of a common share. (2 marks) d) Zoom Corp has a beta of 1.3. Assuming that the risk free rate is 2% and the market return is course info ... ROGERS 10:15 AM @ 29% Inbox bonds pay interest semiannually and mature in 8 years. Compute the yield-to- maturity on these bonds. (2 marks) b) Apple Company has preferred shares that pay a $6.50 dividend per share. Preferred shareholders require an annual rate of return of 10%. Compute the expected price per preferred share. (2 marks) c) Finnish Corp paid a $5 per common share dividend last year. Common shareholders require an annual rate of return of 10% and the company is expected to grow at a constant rate of 4%. Compute the expected price of a common share. (2 marks) d) Zoom Corp has a beta of 1.3. Assuming that the risk free rate is 2% and the market return is 7%, calculate the cost of equity using the CAPM (retained earnings) for Zeta Corp. (2 marks course info

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