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loogydon
Nov 10, 2011, 03:42 PM
Can somebody help me calculate the following:
(1) A 7 percent, semiannual coupon bond has a $1,000 face value and matures in 11 years. What is the current value of this bond if the market rate of interest is 9.8 percent?

(2) Breco Field is currently paying a dividend of $2.20 per share. The dividends are expected to grow at 25% per year for the next four years and then grow 5% per year thereafter. Calculate the expected dividend in year 6.

(3) FastGrow is a no growth firm and has 2 million shares outstanding. It is expected to earn a constant $20 million per year on its assets. If all earnings are paid out as dividends and the cost of capital is 10%, calculate the current price per share for the stock.


(4) A five-year $1,000 par value bond pays a 6.50% annual coupon. Given a YTM of 8.0%, what is the price of the bond today?

A company is currently paying a dividend of $2.20 per share. The dividends are expected to grow at 25% per year for the next four years and then grow 5% per year thereafter. Calculate the expected dividend in year 6.

A 7 percent, semiannual coupon bond has a $1,000 face value and matures in 11 years. A 7 percent, semiannual coupon bond has a $1,000 face value and matures in 11 years. What is the current value of this bond if the market rate of interest is 9.8 percent?

Brenco Field is a no growth firm and has 2 million shares outstanding. It is expected to earn a constant $20 million per year on its assets. If all earnings are paid out as dividends and the cost of capital is 10%, calculate the current price per share for the stock.

A five-year $1,000 par value bond pays a 6.50% annual coupon. Given a YTM of 8.0%, what is the price of the bond today?

Sam's Company expects to pay a dividend of $6 per share at the end of year one, $9 per share at the end of year two, and then be sold for $136 per share. If the required rate on the stock is 20%, what is the current value of the stock?

(1) A 7 percent, semiannual coupon bond has a $1,000 face value and matures in 11 years. What is the current value of this bond if the market rate of interest is 9.8 percent?

(2) Breco Field is currently paying a dividend of $2.20 per share. The dividends are expected to grow at 25% per year for the next four years and then grow 5% per year thereafter. Calculate the expected dividend in year 6.

(3) FastGrow is a no growth firm and has 2 million shares outstanding. It is expected to earn a constant $20 million per year on its assets. If all earnings are paid out as dividends and the cost of capital is 10%, calculate the current price per share for the stock.

(4) A five-year $1,000 par value bond pays a 6.50% annual coupon. Given a YTM of 8.0%, what is the price of the bond today?

(5) Sam's Company expects to pay a dividend of $6 per share at the end of year one, $9 per share at the end of year two, and then be sold for $136 per share. If the required rate on the stock is 20%, what is the current value of the stock?

Curlyben
Nov 10, 2011, 03:54 PM
Please refer to this announcement


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