Stock A pays a dividend of $3 per share every year. The discount rate is 10% and the return on equity is 25%. What is the payout ratio for this stock?

Stock A pays a dividend of $3 per share every year. The discount rate is 10% and the return on equity is 25%. What is the earnings per share at year 2?

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 2, what is the price you have to pay at year 2 (P2)?

Bond A has a coupon rate of 9%, with a two-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)?

Your friend promises you a perpetuity of $1 every year, which starts in year 1. However, your friend is an absent-minded guy, paying you $2 at year 9 but no payment at year 10. Except for these two years, in other years, the payment is always $1. Which of the following statements is true

a. your friend is better off for his being absent-minded

b. you are better off for his being absent-minded

c. there is no difference for his being absent-minded

d. no enough information to make decision

e. none of the above