Third Question only please!!

Exercise 3 (50 points): Procter & Gamble will pay an annual dividend of $0.8 one year from now. Analysts expect this dividend to grow at 10% per year thereafter until the fifth year. After then, growth will level off at 2% per year. What is the value of a share of Procter & Gamble stock if the firm's equity cost of capital is 8%? Exercise 1 (20 points): Compute the price of the following bonds: Bond A: Coupon bond, 4% coupon paid semi-annually, with maturity of 14 years. Bond B: Zero coupon bond with maturity of 7 years. Bond C: Coupon bond, 7.75% coupon paid yearly, with maturity 10 years. Assume that all 3 bonds have the same nominal: 1000 euro. Your required rate of return is the same for each bond and equal to 6%. Exercise 2 (30 points): Compute yield-to-maturity for the following zero-coupon bonds: 1-year zero-coupon bond, traded currently at 980 dollars 2-years zero-coupon bond, traded currently at 920 dollars 3-years zero-coupon bond, traded currently at 840 dollars Assume that all 3 bonds have the same nominal: 1000 dollars. Using YTMs calculated plot the yield curve. Exercise 3 (50 points): Procter & Gamble will pay an annual dividend of $0.8 one year from now. Analysts expect this dividend to grow at 10% per year thereafter until the fifth year. After then, growth will level off at 2% per year. What is the value of a share of Procter & Gamble stock if the firm's equity cost of capital is 8%