XYZ Inc. is planning a bond issue that pays no interest but can be converted into $ 1,000 at maturity of 7 years from purchase. To price these bonds in such a way that they can be competitive with others of equal risk, it was determined that they had a return (YTM) of 9% compounded annually. At what price should XYZ sell the bonds?

XYZ Corp. wants to achieve a stable growth rate of 7%. If it can achieve 12% return on equity, what percent of profit should XYZ retain for investment purposes?

Assume that XYZ Inc. has an 11.5% return on equity and retains 55% of its earnings for re-investment purposes. He recently paid a dividend of $ 3.25, and the stock is currently selling for $ 40. Determine.

to. The growth rate of XYZ.

b. The investor's required rate of return.

XYZ pays a dividend of $ 1 and currently sells for $ 32.50. If investors require a 12% return on their investments when buying XYZ shares, what growth rate should XYZ provide to investors?

What is the value of a preferred share when the dividend is 14% at an even value of $ 100. The appropriate discount rate for a share at this risk level is 12%.