8. Investors agree that a stock's dividend will grow at 3.25% and all have the same...

 

 

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8. Investors agree that a stock's dividend will grow at 3.25% and all have the same required return of 16%. What price would these investors be willing to pay if they thought that the next dividend is going to be: a. $1.75 b. $2.00 c. $2.50 d. $3.00 9. Find the prices of the following bonds using the Excel spreadsheet that was part of the Bond assignment. Bond A: YTM = 10%; Coupon Rate = 10%; Years to maturity is 15. Bond B: YTM = 8%; Coupon Rate = 10%; Years to maturity is 15. Bond C: YTM = 12%; Coupon Rate = 10%; Years to maturity is 15. Bond D: YTM = 12%; Coupon Rate = 12%; Years to maturity is 20. Bond E: YTM = 12%; Coupon Rate = 10%; Years to maturity is 20. Bond F: YTM = 12%; Coupon Rate = 14%; Years to maturity is 20. 8. Investors agree that a stock's dividend will grow at 3.25% and all have the same required return of 16%. What price would these investors be willing to pay if they thought that the next dividend is going to be: a. $1.75 b. $2.00 c. $2.50 d. $3.00 9. Find the prices of the following bonds using the Excel spreadsheet that was part of the Bond assignment. Bond A: YTM = 10%; Coupon Rate = 10%; Years to maturity is 15. Bond B: YTM = 8%; Coupon Rate = 10%; Years to maturity is 15. Bond C: YTM = 12%; Coupon Rate = 10%; Years to maturity is 15. Bond D: YTM = 12%; Coupon Rate = 12%; Years to maturity is 20. Bond E: YTM = 12%; Coupon Rate = 10%; Years to maturity is 20. Bond F: YTM = 12%; Coupon Rate = 14%; Years to maturity is 20.

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