Theof any asset is equal to the present value of its expected future cash flows discounted at the investor's required rate of return. 9. a. Expected rate of return b. Intrinsic value c. Market price d. Growth rate 10. Swanson, Inc. bonds have a 12% coupon rate with semi-annual coupon payments. They have 22 years to maturity and a par value of $1,000. Your required rate of return is 10%. Suppose you decide to buy the bond, and immediately afterwards interest rates drop by 0.5%. How much value has the bond gained or lost? (Hint: find the price of the bond before and after the change in interest rates.) a. Loss of $41.99 b. Gain of $41.99 c. Gain of $52.37 d. Gain of $63.84 11. Casino Games Company common stock pays an annual dividend of $5.43 and is expected to remain constant for the forseeable future. If investors' required rate of return on this stock is 10.30%, what is the intrinsic value per share? a. $41.58 b. $52.72 c. $62.04 d. $72.31 12. Lily Co. paid a dividend of $4.25 on its common stock at the end of last year. The company's dividends are expected to grow at a constant rate of 4.5% indefinitely. If the required rate of return on this stock is 12%, compute the current value per share of Lily Co. stock a. $78.38 b. $72.43 c. $59.22 d. $41.90