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Suppose that Jada Corp. stock is expected to pay a dividend of $0.75 at the end of the year and that the dividend is expected

Suppose that Jada Corp. stock is expected to pay a dividend of $0.75 at the end of the year and that the dividend is expected to grow at a rate of 7%. The companys current beta is 1.9, the current risk-free rate is 2.5% and the market risk premium is 8%. What is the intrinsic value of this stock?

$7.01

None of these

$4.24

$10.71

$7.50

Gertrude Corp bonds have a 13% annual coupon, 7 years left until maturity, and they are currently selling for $1250. What is the yield to maturity of Gertrudes bonds?

8.00%

15.24%

None of these

8.17%

14.79%

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