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1.) What is the value of a preferred stock that pays dividend of $3.65 per year and has a required rate of return (kp) of 6.25%?

2.) What is the estimated value of a common stock that had free cash flow last period of $1.45(=FCF0) per year, the cash flow is expected to grow at 16% per year for the next three years then grow at 6% from there into the foreseeable future and the stocks required rate of return (ks) is 11.5%?

3.) What is the value of a $5000 face value bond with a coupon rate of 5.5% paid annually and 21 years to maturity if the required rate of return (kd) is 5%?

4.) What is the price, equivalent annual yield (EAY), and bond equivalent yield (BEY) of $100,000 face value discount bond which matures in 180 days if the discount quote is 2.25?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91237030

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