$4.$ Valuing Bonds

Union Local School District has a bond outstanding with a coupon rate of $2\mathrm{.}9\%$ paid semiannually and $16$ years to maturity. The yield to maturity on this bond is $2\mathrm{.}7\%$ and the bond has a par value of $$5,000.$ What is the dollar price of the bond?

Chapter $8.$ Stock Valuation

$5.$ Stock Values

The RLX Co$.$ just paid a dividend of $$3\mathrm{.}20$ per share on its stock. The dividends are expected to grow at a constant rate of $4\%$ per year indefinitely. If investors require a return of $10\mathrm{.}5\%$ on the company stock, what is the current price? What will the price be in $3$ years? In $15$ years?

$6.$ Stock Valuation

Caccamise Co$.$ is expected to maintain a constant $3\mathrm{.}4\%$ growth rate in its dividends indefinitely. If the company has a dividend yield of $5\mathrm{.}3\%,$ what is the required return on the company stock?

$7.$ Valuing Preferred Stock

Fegley, Inc. has an issue of preferred stock outstanding that pays a dividend of $$3\mathrm{.}80$ every year in perpetuity. If this issue currently sells for $$93$ per share, what is the required return?