FNCE $623-$ FINAL EXAM $-$ SUMMER $2024$

$1-$ Open one blank excel file and record all your workings on it$.$ Save the name of the file with this

format $($ your full name$-$section number$)$ e$.$g$.$ SINA MOEINI$-8$

$2-$ Show all your answers in ONE sheet.

$3-$ NO pasted work $($formulas$),$ NO ontine $($ AI$)$ work

$4-$ The excel file will be uploaded on the folder for final exam on BS$.$

$5-$ Submit the form before time is up$,$ NO tate and duplicate submission is allowed.

$4$ A company is expected to pay a dividend of $$2\mathrm{.}50$ next year, and dividends are expected to grow at a

constant rate of $4\%$ per year indefinitely. If the required rate of return on the stock is $10\%,$ what is the

intrinsic value of the stock?

$5$ A company pays a fixed annual dividend of $$3$ and the required rate of return is $7\%.$ Compare the

valuation of this stock using the Perpetuity model and assuming the dividends grow at a constant

rate of $2\%$ per year using the Constant Growth Model.

$6$ A preferred stock pays a fixed dividend of $$5$ per quarter. If the annual required rate of return for this

preferred stock is $8\%,$ what is the value of the stock?

$7$ A perpetual bond pays an annual coupon of $$90.$ If the required rate of return is $7\%,$ what is the value of

the bond?

$8$ A $10-$year bond has a face value of $$1,000$ and pays a semi$-$annual coupon of $$50.$ If the required rate of

return is $6\%,$ what is the value of the bond?

$9$ consider the following cash flows, calculate both NPV and IRR of the project. $($ rate $=7\%)$

$10$ A zero$-$coupon bond with a face value of $$1,000$ matures in $15$ years. If the required rate of return is $7\%,$

What is the value of the bond today?

$11$ If I apply today for $$100K$ loan and the bank asks me to pay back $$153K($with an interest of $13\%$ during $7$

Yrs$,)$ how much will I have to pay monthly?

$12$ A company is expected to pay a dividend of $$1\mathrm{.}50$ next year. Dividends are expected to grow at $20\%$ per

year for the next $3$ years, after which they are expected to grow at a constant rate of $5\%$ per year

indefinitely. If the required rate of return is $12\%,$ what is the intrinsic value of the stock?