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Wine and Roses Inc offers a 65 percent coupon bond with semiannual payments and a yield to maturity of 725 percent The bonds mature in 13 years What is the market price of a $1000 face value

Wine and Roses, Inc. offers a 6.5 percent
coupon bond with semiannual payments and a yield to maturity of 7.25 percent.
The bonds mature in 13 years. What is the market price of a $1,000 face value
bond?

$1,478.87

$937.54

$1,396.21

$1,541.33

$1,060.64

A zero coupon bond with a face value of $1,000 is issued
with an initial price of $455.50. The bond matures in 18 years. What is the
implicit interest, in dollars, for the first year of the bond’s life? Use
semiannual compounding.

$12.19
$11.06
$10.17
$6.09
$20.34

Michael’s, Inc. just paid $1.80 to its shareholders as the
annual dividend. Simultaneously, the company announced that future dividends
will be increasing by 4.00 percent. If you require a rate of return of 8.2
percent, how much are you willing to pay today to purchase one share of
Michael’s stock?

$44.57
$46.37
$15.34
$22.83
$22.29

Leslie’s Unique Clothing Stores offers a common stock that
pays an annual dividend of $2.40 a share. The company has promised to
maintain a constant dividend. How much are you willing to pay for one share
of this stock if you want to earn a 15.70 percent return on your equity
investments?

$18.10
$15.29
$6.54
$13.30
$37.68

Shares of common stock of the Samson Co. offer an expected
total return of 15.4 percent. The dividend is increasing at a constant 4.4
percent per year. The dividend yield must be:

3.50
percent.
15.40
percent.
11.00
percent.
19.80
percent.
4.40
percent.

Weisbro and Sons common stock sells for $50 a share and
pays an annual dividend that increases by 5.3 percent annually. The market
rate of return on this stock is 9.30 percent. What is the amount of the last
dividend paid by Weisbro and Sons?

$2.11
$1.90
$4.42
$2.52
$1.85

The Bell Weather Co. is a new firm in a rapidly growing industry.
The company is planning on increasing its annual dividend by 18 percent a
year for the next 4 years and then decreasing the growth rate to 6 percent
per year. The company just paid its annual dividend in the amount of $3.20
per share. What is the current value of one share of this stock if the
required rate of return is 8.70 percent?

$190.24
$193.44
$174.46
$243.57
$246.77

NU YU announced today that it will begin paying annual
dividends. The first dividend will be paid next year in the amount of $0.63 a
share. The following dividends will be $0.68, $0.83, and $1.13 a share
annually for the following three years, respectively. After that, dividends
are projected to increase by 4.1 percent per year. How much are you willing
to pay today to buy one share of this stock if your desired rate of return is
15 percent?

$11.23
$10.79
$11.42
$8.42
$2.11

Railway Cabooses just paid its annual dividend of $4.70
per share. The company has been reducing the dividends by 12.8 percent each
year. How much are you willing to pay today to purchase stock in this company
if your required rate of return is 15 percent?

$36.72
$19.07
$14.93
$20.00
$14.74

 

May 19 2020 View more View Less

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