$1$a$.$ Suppose a company does not pay dividends. The appropriate industry PE for this type

of company is $17\mathrm{.}50.$ Current EPS is $$2\mathrm{.}62.$ What is the forecasted stock price a year

from now if the earnings is expected to grow at $11$ percent for the next year.

Group of answer choices

a$.$ $$50\mathrm{.}89$

b$.$ $$48\mathrm{.}37$

c$.$ $$45\mathrm{.}85$

$1$b$.$ ABC Company has $6\mathrm{.}5$ percent coupon bond on the market with $15$ years to

maturity. The bonds make semiannual payments and currently sells for $$1,063\mathrm{.}20.$ What

is the current YTM$?$

Group of answer choices

a$.12\mathrm{.}08$ percent

b$.5\mathrm{.}86$ percent

c$.5\mathrm{.}46$ percent

$1$c$.$ Suppose today a $8$ percent coupon bond sells at par. Five years from now, the

required return on the same bond is $10$ percent. What is the coupon rate on the bond

now $($five years from todayl? The YTM$?$

a$.$ Coupon rate $=8$ percent; YTM $=8$ percent

b$.$ Coupon rate $=8$ percent; YTM $=10$ percent

c$.$ Coupon rate $=10$ percent; YTM $=8$ percent

d$.$ Coupon rate $=10$ percent; YTM $=10$ percent