Stock A has an earnings of $5 per share at year 1. The interest rate is 20%, and the return on equity is 25%. If there is no plow-back, what is the dividend per share at year 0 (DIV0) ?

Select one:

a. $5.00

b. $4.00

c. $3.00 d. $2.00

e. none of the above

Bond A has a coupon rate of 9%, with a three-year maturity and a face value of $1,000. If the discount rate now or future is 10%, and you want to buy bond A at year 1, what is the price you have to pay at year 1 (P1)?

Select one:

a. $1,000.00

b. $1,120.00

c. $975.13

d. $982.64

e. none of the above

Stock A has an earnings of $5 per share at year 1. The interest rate is 20%, and the return on equity is 25%. If there is no plow-back, what is the stock price at year one (P1) ?

Select one:

a. $15.00

b. $25.00

c. $30.00

d. $35.00

e. none of the above