What is the value today of a $10$ per cent coupon bond with a par value of $$1000$ that matures in $10$ years if you require a $12$ per cent rate of return and if coupons are paid annually? $(2$ marks$)$

What is the value today of a preference share with a par value of $$10\mathrm{.}00$ and $50\mathrm{.}90$ annul dividend if you require a $10$ per centr rate of return? $(1$ mark$)$

What is the velue of a share today if the mostrecent earning per share was $50\mathrm{.}80$ and it paid a dividend of $50\mathrm{.}50$ per share? You expect to earn $51\mathrm{.}20$ per share and continue its payout ratio. Assume that you expect to sell the shares for $$16\mathrm{.}50$ at the end of the year, and you require a $12$ per cent rate of return. $(2$ marks$)$

What is the value of a share today if the company pays $40\%$ of earnings in dividends and the return on equity $($ROE$)$ is $16$ per centt? The company just paid a $50\mathrm{.}80$ dividend per share, and you require a $14$ per cent rate of return. Using the infinite period DDM method $(2$ marks$)$