2019-04-03T12:14:42+00:00

(TCO D) A stock has just paid a dividend and declared an annual dividend of $20

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(TCO D) A stock has just paid a dividend and declared an annual dividend of $20.00 to be paid one year from today. The dividend is expected to grow at a 7% annual rate. The return on equity for similar stocks is 12%. What is P0? Show your work.
(TCO D) A stock has just paid a dividend and declared an annual dividend of $2.45 to be paid one year from today. The dividend is not expected to grow. The return on equity for similar stocks is 12%. What is P0? Show your work.

(TCO D) A bond currently sells for $1,000 and has a par of $1,000. It was issued two years ago and had a maturity of 10 years. The coupon rate is 6% and the interest payments are made semiannually. What is its YTM? Show your work.

(TCO D) A given bond has 5 years to maturity. It has a face value of $1,000. It has a YTM of 6% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for? Show your work

(TCO B) You start saving $100 per month in an account that pays 4% interest, compounded monthly. You make the payment at the beginning of each month and interest is applied at the end of each month. How much money will you have in the account in 6 years? Show your work.

(TCO B) A certain investment will pay $10,000 in 25 years. If the annual return on comparable investments is 7%, what is this investment currently worth? Show your work.


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