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Ayarlar 3.1.2.1.1 1.2.1.3 4.1.5. 16:1.7.1.8.1.9.1.10-11.1.1213.1.14.415. 16. 17 Q15) The $1,000 face value ABC bond has a coupon rate of 6%, with interest paid semi-annually, and matures in 5 years. If the bond is priced to yield 8%, what is the bond's value today? (Ans. $918.89) Q16) Assume that a young start-up company will pay no dividends for the next 5 years. At year 6 it will pay a dividend of $2.00 per share which will grow by 5% a year for 2 years and then will grow at a rate of 3% indefinitely. If the required return is 10%, how much will you pay for a share today? (Ans. $18.36) Q17) Suppose that a company has 2 million shares outstanding and plans to pay a dividend of $3 a share next year. Assuming that investors expect a steady dividend growth rate of 8% a year and require a return of 12%, what is the value of the company? (Ans. $150 mil.) Q18) Consider a project that produces the following cash flows: Cash Flows, Dollars Co C2 5,000 4,000 -11,000 If the IRR is 13% and the opportunity cost of capital is 10%, would you accept it? State your reason as well. (Ans. No) Q19) The KLM bond has a 8% coupon rate (with interest paid semi-annually), a maturity value of $1,000, and matures in 5 years. If the bond is priced to yield 6%, what is the bond's current price? (Ans. $1,085) will may a dividend of $10 next year; is expected to grow