Question: Answer all questions please Giant Electronics is issuing 20-year bonds that will pay coupons semiannually. The coupon rate on this bond is 7.8 percent. It

Answer all questions please Answer all questions please Giant Electronics is issuing 20-year bonds that will

Giant Electronics is issuing 20-year bonds that will pay coupons semiannually. The coupon rate on this bond is 7.8 percent. It the market rate for such bonds is 7 percent, what will the bonds sell for today? (Round to the nearest dollar.) a. $1, 037 b. 1.085 c. $861 d. $923 e. $1, 123 Free Motion Enterprises paid a $2.20 per share annual dividend last week. Dividends are expected to increase by 3.75 percent annually. What is one share of this stock worth to you today if your required rate of return is 15 percent? a. $19.06 b. $19.30 c. $19.56 d. $20.29 e. $20.59 Northern Gas recently paid a $2.80 annual dividend on its common stock. This dividend increases at an average rate of 3.8 percent per year. The stock is currently selling for $26.91 a share. What is the required rate of return on the stock? a. 13.88 percent b. 14.03 percent c. 14.21 percent d. 14.37 percent e. 14.60 percent Springboro Tech is a young start-up company. No dividends will be paid on the stock over the next 15 years, because the firm needs to plow back its earnings to fuel growth. The company will pay a $15 per share dividend in 16 years and will increase the dividend by 4 percent per year thereafter. What is the current share price if the required return on this stock is 8 percent? a. $118.22 b. $119.19 c. $120.00 d. $164.59 e. $240.00

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