Problem 9 Intro You bought a share of stock for $100. It is now worth $102...
Problem 12 Intro A stock just paid an annual dividend of $1.1. The dividend is expected to grow by 10% per year for the next 4 years. The growth rate of dividends will then fall steadily by 1.25% per year, from 10% in year 4 to 5% in year 8 and stay at that level forever. The required rate of return is 12%. 18 Attempt 6/10 for 10 pts. Part 1 What is the expected dividend in 8 years? 2+...
Intro IBM just paid an annual dividend of $4.3 per share. The dividend is expected to grow by 5% per year. The required rate of return is 12%. IB Part 1 Attempt 1/10 for 10 pts. By DDM/Gordon growth model, what is the price to sell the stock in 3 years? 1+ decimals Submit Part 2 Attempt 1/10 for 10 pts. If you buy the stock today, hold it, sell it in 3 years at the price computed in Part...
Problem 22 Intro One year ago, Gangnam Inc. issued a 12-year, 5% coupon bond at its par value of $1,000. This bond makes annual, not semi-annual payments. The bond can be called in 8 years at a price of $1,100 and it now sells for $785.83. The bond has a yield to maturity of 8%. - Attempt 1/5 for 10 pts. Part 1 What is the current yield? Enter your answer as a decimal. 3+ decimals Submit Part 2 Attempt...
Intro ABC Corp. has just paid a dividend of $0.49. ABC has an annual required return of 9.52%. Part 1 18 Attempt 1/10 for 10 pts. If dividends are annual and expected to be constant, what is the intrinsic value of ABC stock? 1+ decima Submit 1 - Attempt 1/10 for 10 pts. Part 2 What is ABC's dividend yield? 3+ decima Submit Part 3 18 | Attempt 1/10 for 10 pts. From now on, assume that the dividend of...
Problem 6 Intro A bond has an annual coupon rate of 4.3%, a face value of $1,000, a price of $1,196.59, and matures in 10 years. Part 1 Attempt 1/10 for 10 pts. What is the bond's YTM? 4+ decimals Submit Problem 7 Intro Forever 21 is expected to pay an annual dividend of $3.35 per share in one year, which is then expected to grow by 10% per year. The required rate of return is 14%. Part 1 B...
Problem 2 Intro A stock just paid an annual dividend of $2. The dividend is expected to grow by 10% per year for the next 3 years. The growth rate of dividends will then fall steadily (linearly) from 10% after 3 years to 7% in year 6. The required rate of return is 12%. Part 1 Attempt 6/10 for 10 pts. What is the stock price if the dividend growth rate will stay 0.07 (7%) forever after 6 years? 1+...
Intro One year ago, Gangnam Inc. issued a 12-year, 5% coupon bond at its par value of $1,000. This bond makes annual, not semi-annual payments. The bond can be called in 8 years at a price of $1,100 and it now sells for $785.83. The bond has a yield to maturity of 8%. Part 1 Attempt 1/5 for 10 pts. What is the current yield? Enter your answer as a decimal. 3+ decimals Submit Part 2 - Attempt 1/5 for...
Intro Samsung just paid an annual dividend of $2.3. The company has a required return of 10%. Part 1 B Attempt 2/10 for 9 pts. If dividends are expected to be constant, what is the intrinsic value (fair price) of Samsung stock? 23 Correct v Using the no-growth dividend discount model: IB Attempt 1/10 for 10 pts. Part 2 You now think that dividends will grow by 5% from year to year. What is the intrinsic value of Samsung stock?...
Intro Forever 21 is expected to pay an annual dividend of $3.66 per share in one year, which is then expected to grow by 5% per year. The required rate of return is 1496. BB Attempt 1/10 for 9.5 pts. Part 1 What is the current stock price? 1 + decimals Submit
Intro A corporate bond pays interest twice a year and has 18 years to maturity, a face value of $1,000 and a coupon rate of 5.7%. The bond's current price is $1,373.42. It is callable starting 12 years from now (years to call) at a call price of $1,076. Attempt 2/5 for 9 pts. Part 1 What is the bond's yield to maturity? Enter your answer as a decimal. 4+ decimals Submit Attempt 1/5 for 10 pts. Part 2 What...