The number 3

b) If the notes are callable after 3 years at $103.50, calculate the yield to call. 3) Visa Inc. (V) currently pays a dividend of $1.00 per share. The dividends are expected to grow at 50% per year for 3 years. After 3 years, the dividend grow rate will drop to a constant rate of 5%. Calculate V's current stock price given the following: V=1.03;Rm=10%;Rf=3%