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The stock of Robotic Atlanta Inc. is trading at $27.55 per share. In the past, the firm has paid a constant dividend (i.e., g=0 )

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The stock of Robotic Atlanta Inc. is trading at $27.55 per share. In the past, the firm has paid a constant dividend (i.e., g=0 ) of $5.46 per share and it has just paid an annual dividend (i.e., D0 = 5.46). However, the company will announce today new investments that the market did not know about. It is expected that with these new investments, the dividends will grow at 7.4% forever. Assuming that the discount rate remains the same, what will be the price of the stock after the announcement? (Round your answer to 2 decimal places and record your answer without dollar sign or commas). Your Answer: Answer Pharsalus Inc. just paid a dividend (i.e., D0) of $3.28 per share. This dividend is expected to grow at a rate of 8.8 percent per year forever. The appropriate discount rate for Pharsalus's stock is 15.1 percent. What is the price of the stock? (Round your answer to 2 decimal places and record your answer without dollar sign or commas). Your Answer: Compute the price of a $1,000 par value, 10 percent (semi-annual payment) coupon bond with 30 years remaining until maturity assuming that the bond's yield to maturity is 15 percent? (Round your answer to 2 decimal places and record your answer without dollar sign or commas). Your Answer: Answer Calculate the current price of a $1,000 par value bond that has a coupon rate of 14 percent, pays coupon interest annually, has 23 years remaining to maturity, and has a current yield to maturity (discount rate) of 5 percent. (Round your answer to 2 decimal places and record without dollar sign or commas). Your Answer: Answer Calculate the current price of a $1,000 par value bond that has a coupon rate of 6 percent, pays coupon interest annually, has 18 years remaining to maturity, and has a current yield to maturity (discount rate) of 14 percent. (Round your answer to 2 decimal places and record without dollar sign or commas). Your

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