the question number 13. a firm is expected to pay a dividend of $2.00 next year and 3.75 the following year. financial analysts believe the stock will be at their price target of 125.00 in two years. computer the value of this stock with a required rate of return of 15 percent

Id then be more risky to ssible to say without more information. 12. Which of the following statements is CORRECT? a. A zero coupon bond's current yield is equal to its yield to maturity. b. If a bond's yield to maturity exceeds its coupon rate, the bond will sell at par. c. All else equal, if a bond's yield to maturity increases, its price will fall. d. If a bond's yield to maturity exceeds its coupon rate, the bond will sell at a premium over par. e. All else equal, if a bond's yield to maturity increases, its current yield will fall. 13. A firm is expected to pay a dividend of $2.00 next year and $3.75 the following year. Financial analysts believe the stock will be at their price target of $125.00 in two years. Compute the value of this stock with a required rate of return of 15 percent. A. $78.34 B. $81.05 3.1 D. $99.09 10.875 3.73 C. $87.13 4. The Francis Company is expected to pay a dividend of DI = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta risk premium is 5.50%, and the risk-free rate is 4.00%. What is the company's current BAU Plus