3. a. A company has just paid a $3.50 dividend. The company announced that they will...

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3. a. A company has just paid a $3.50 dividend. The company announced that they will increase their dividend by 5% per year from now on, and all the analysts believe they will actually do that. If the required return on this stock is 10.5%, what should its price be today? b. A Verizon bond has a 6% coupon rate, and it pays interest semi-annually. This bond has 12 years to maturity. Par value for this bond is $1000. If the market interest rate is 7%, what is the price of this bond? Is this a premium or a discount bond? Why? c. A famous portfolio manager has earned an average return of 10.4% over the last ten years. If the inflation rate during that time has averaged 2.3% per year, what is the average real annual return this manager has earned? 3. a. A company has just paid a $3.50 dividend. The company announced that they will increase their dividend by 5% per year from now on, and all the analysts believe they will actually do that. If the required return on this stock is 10.5%, what should its price be today? b. A Verizon bond has a 6% coupon rate, and it pays interest semi-annually. This bond has 12 years to maturity. Par value for this bond is $1000. If the market interest rate is 7%, what is the price of this bond? Is this a premium or a discount bond? Why? c. A famous portfolio manager has earned an average return of 10.4% over the last ten years. If the inflation rate during that time has averaged 2.3% per year, what is the average real annual return this manager has earned?