1. The Okra Corporation last dividend was $1.00.Its dividend growth rate is expected to be constant at 15% for 2 years, after which dividends are expected to grow at a rate of 12% forever. Okra's required rate of return is 14%.

Okra's horizon or terminal value is :

1. Chick-Fil-A bonds currently sells for $1,500. They have a 9 year maturity, a 6% annual coupon, and a par value of $1,000. Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today?

3. Assume the risk-free rate is 7% and that the market risk premium is 5%. What is the required rate of return with a beta of 1.25?

4. Nissan has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $1.00, and its current price is $45.

What is its effective annual rate of return?

5. Baxter Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.However, investors expect Baxter to begin paying dividends, beginning with a dividend of $1.75 coming 3 years from today.The dividend should grow rapidly-at a rate of 18% per year-during Years 4 and 5; but after Year 5, growth should be a constant 4% per year.If the required return on Baxter is 17%, what is the value of the stock today?