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This is finance questions. Please make your answers clear and to the point. You must show any and all work to receive full credit. 1.

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This is finance questions.

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Please make your answers clear and to the point. You must show any and all work to receive full credit. 1. Xytex Products just paid a dividend of $1.62 per share, and the stock currently sells for $28. If the discount rate is 10 percent, what is the dividend growth rate? (2 pts.) 2. A 5.65 percent coupon bond (face value=$1,000) with 18 years left to maturity is offered for sale at $1,035.25. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) (2 pts.) 3. A preferred stock from Hecla Mining Co. (HLPRB) pays $3.50 in annual dividends. If the required return on the preferred stock is 6.8 percent, what is the value of the stock? (2 pts.) 4. Financial analysts forecast Limited Brands' (LTD) growth rate for the future to be 12.5 percent. LTD's recent dividend was $0.60. What is the value of Limited Brands' stock when the required return is 14.5 percent? (2 pts.) 5. Flatte Restaurant is considering the purchase of a $7,500 souffle maker. The souffle maker has an economic life of five years and will be fully depreciated by the straight-line method. The machine will produce 1,300 souffles per year, with each costing $2.15 to make and priced at $5.25. Assume that the discount rate is 14 percent and the tax rate is 34 percent. Should the company make the purchase? (2 pts.)

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