1. Suppose you shares of stock just paid a dividend of $1.26 per share and expect...

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1. Suppose you shares of stock just paid a dividend of $1.26 per share and expect constant growth of 3% forever after. The required rate of return is 12%. What is the current fundamental value of this share of stock? (3 pts) 2. Consider a stock that is expected to generate a cash flow of $2 in year 1, $3 in year 2, and $4 in year 3. Following that, they expect growth at a rate of 2% forever thereafter. The required rate of return is 10%. What current fundamental valuation would you place on this share of stock? (4 pts) 3. Consider bonds that pay a coupon rate of 4.7%, semiannually, for the next 15 years. The face value of the bonds is $1,000. The YTM for the bonds is 6% What is the current value of that bond? (3 pts) 1. Suppose you shares of stock just paid a dividend of $1.26 per share and expect constant growth of 3% forever after. The required rate of return is 12%. What is the current fundamental value of this share of stock? (3 pts) 2. Consider a stock that is expected to generate a cash flow of $2 in year 1, $3 in year 2, and $4 in year 3. Following that, they expect growth at a rate of 2% forever thereafter. The required rate of return is 10%. What current fundamental valuation would you place on this share of stock? (4 pts) 3. Consider bonds that pay a coupon rate of 4.7%, semiannually, for the next 15 years. The face value of the bonds is $1,000. The YTM for the bonds is 6% What is the current value of that bond? (3 pts)