Introduction It is important that you include the procedure and briefly explain how you obtained each result. Valuing Stocks and Bonds 1. Imagine you invest in a circulating bond with an annual coupon of 6% and a remaining maturity of 10 years. The bond has a face value of $900 and a market interest rate of 8%. Determine the price you should pay for the bond. The bonds of Mobile Motors Inc. have 12 years remaining until maturity. Interest is paid annually, with a face value of $2,000, a coupon interest rate of 7%, and a yield to maturity (YTM) of 11%. Determine the current market price of the bond. Cassidy Industries' circulating bonds have a face value of $800, a semi-annual coupon of 8%, 12 years to maturity, and a YTM of 10%. Determine the bond's price. Suppose a bond has a face value of $3,000, 10 years to maturity, an annual coupon of 7%, and is selling for $2,800. Calculate the yield to maturity (YTM). Also, calculate the bond's price in 4 years, assuming the yield to maturity remains constant. Suppose Roberto is considering a 12-year bond with a face value of $2,000 and an 8% rate payable semi-annually. Calculate the price Roberto should pay if an "effective" annual interest rate of 8.2% is required. River Industries paid $2.00 in dividends per share. The dividend is expected to increase by 10% annually for the next 4 years and 6% in the following years. Calculate the expected dividend per share for each of the next 6 years. It is estimated that Corner Company will generate $18 million in free cash flow during the first year, with an expected growth rate of 5% per year. The company has no debt or preferred stock, and its weighted average cost of capital (WACC) is 9%. Calculate the value per share, considering that the company has $32 million in outstanding shares. Calculate the nominal rate of return on a perpetual preferred stock with a face value of $200, a dividend of 9% of the face value, and a current market price of $100. Rome Corporation is investing in research and development and will not pay dividends in the coming years. Venetian Industries is interested in acquiring shares of Rome Corporation. The CEO of Venetian has estimated Rome's free cash flows for the next 3 years: $7 million, $9 million, and $12 million. After the third year, the free cash flow is expected to grow at a constant rate of 5%. Rome Corporation's weighted average cost of capital (WACC) 1s 7%, and the market value of its debt and preferred stock totals $60 million. Rome Corporation has $22 million in non-operating assets and 9 million common shares outstanding. a. Calculate the present value of the expected free cash flows for the next 3 years. b. Determine the market value of Rome Corporation's operations. c. Estimate the price per share of Rome Corporation