1) Gunter Koch, a top-five draft pick of FC Bayern Munich, and his agent are estimating 3 contract options. Each option offers signing bonus and series of payments over life of contract. Koch utilizes a 10.25% rate of return to estimate contracts.
Min Pages: 2
2) Eaton inc. has the issue of (perpetual) preferred outstanding. It has the annual dividend of= $6. If yield on this favoured share is= 12%, evaluate the current price.
i) If the next dividend comes in exactly 1 year?
ii) If the next dividend is payable in three months?
iii) If it is presently callable at $50 per share (and the next dividend is payable in three months)?