Description of this paper

Please open attachment..

Description

Solution


Question

Please open attachment..,Just in case you are not able to open the attachment... 4- Bond Yields: The Timberlake-Jackson Wardrobe Co. has 8 percent coupon bonds on the market with nine years left to maturity. The bonds make annual payments. If the bond currently sells for $1047.50, what is its YTM? 6- Bond Prices: Brittany Co. issued 15 years bonds one year ago at a coupon rate of 8.50 percent. The bonds make semiannual payments. I the YTM on these bonds is 7.90 percent, what is the current bond price? 8- Coupon Rates: Young Corporation has bonds on the market with 10.5 years to maturity, a YTM of 6.9 percent, and a current price of $1,070. The bonds make semiannual payments. What must the coupon rete be on the bonds? 2- Stock values: The next dividend payment by Carroll, Inc,. will be $1.90 per share. The dividends are anticipated to maintain a 5.5 percent growth rate, forever. If the stock currently sells for $47.00 per share, what is the required return? 4- Stock Values: Diamond Corporation will pay a $3.75 per share dividend next year. The company pledges to increase its dividend by 5.5 percent per year, indefinitely. If you require a 12 percent return on your investment, how much will you pay for the company?s stock today? 8- Valuing Preferred Stock: Gesto, Inc., has an issue of preferred stock outstanding that pays a $5 dividend every year, in perpetuity. If this issue currently sells for $84.12 per share, what is the required return? 10- Growth Rates: The stock price of Retro Co is $65. Investors require a12 percent rate of return on similar stocks. If the company plans to pay a dividend of $3.80 next year, what growth rate is expected for the company?s stock price? 12- Stock Valuation: Barnard Corp. will pay a dividend of $3.05 next year. The company has stated that it will maintain a constant growth rate of 5 percent a year forever. If you want a 15 percent rate of return, how much will you pay for the stock? What if your want a 10 percent rate of return? What does this tell you about the relationship between the required return and the stock price?

 

Paper#3812 | Written in 18-Jul-2015

Price : $25
SiteLock