Thank you.

Q10) Suppose Sargrass is expected to pay a dividend of $3.00 per share forever into the future but has no growth opportunities whatsoever. If the required return on Sargrass's stock is 12%, what is a share worth? (Ans. $25) Q11) Carlatent Inc. offer bonds with annual coupon payments of $55 each. The bond has a face value of $550 and matures in 7 years. What must be the value of the bond if its yield to maturity is 9.4%? (Ans. $566.38) Q12) What is the value a semi-annual bond with a coupon rate of 10%, $1,000 face value, and 10 years to maturity, if its yield to maturity is 9%? ($1065.04) Q13) Suppose that you are considering to purchase an office networking software. You have two alternatives each with a 3 years of expected life. Below are cash flows of each alternative. If the opportunity cost of capital is 7%, which one would you choose? Why? System Alternative 1 Alternative 2 -800 -700 Cash Flows, Thousands of Dollars C2 C3 350 350 350 300 300 300 (Ans. Alternative 1) Q14) What is the coupon rate of a semi-annual bond with a yield to maturity of 10% $1,000 face value, and 20 years to maturity, if it currently sells for $914.202 (Ans. 9%) 015) The $1.000 face value ABC bond has a coupon rate of 6%, with interest paid