Suppose you expect Koch Industries to pay an annual dividend of $8.31 per share in the coming year and to trade 592 per share at the end of the year. If investments with equivalent risk to Koch's stock have an expected return of 8.9%, points) a. What is the most you would pay today for Koch's stock? b. Compute and Comment on the dividend yield, capital gain rate and total return would you expect at this price? Ford issued two bonds with semiannual interest payments of 408. One bond matures in two years and the other matures in ten years. Both bonds currently sell at par (10008), meaning that they offer same percentage of YTM 1. Calculate the price of each of the bond if the YTM rises to 10% (Show the steps of calculation) 2. Comment on the pattern you observe among the two bonds from the current trading price, price after change in YTM (Show the steps of calculation) (2points) The Rich Corporation has just invented a cheap form of energy. Investors with a 15% required rate of return expect this company to grow at an accelerated rate of 35% per year for the next 3 years and then continue at a constant growth rate of 9% per year . What would investors be willing to pay for the common stock fthe most recent EPS was 5.00 per share and the dividend payout rate is 404