Question: please help 1 Problem solving John Corporation is expected to pay the following dividends over the next four years: 515, 510, S5, and $2.75. Aberward,
1 Problem solving John Corporation is expected to pay the following dividends over the next four years: 515, 510, S5, and $2.75. Aberward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. In the required return on the stock is 10 percent, what is the current share price? 2. Woody Parts just paid a dividend of $3,5 on its stock. The growth rate in dividends is expected to be a a constant 4 percent per year indefinitely. Investors require a return of 14 percent for the first three years, a return of 10 percent for the next three years, and a rotum of 8 percent thereafter. What is the current share price? 3. Chamberlain Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 6 percent coupon bonds with $1,000 par value on the market that sell for $1,083. make semiannual payments, and mature in 20 years. What coupon rate should the company set on its new bonds if it wants thein to sell at par? You want to be a millionaire when you retire in 45 years. How much do you have to save cach month if you can earn an annual return of 8 percent? How much do you have to save each month if you wait 5 years before you begin your deposits? 15 years? 3. You need a 30 year, fixed rate mortgage to buy a new home for $235.000. Your mortgage bank will lend you the money at an APR of 5.35 percent for this 360 month loan. However, you can afford monthly pay ments of only $925, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $9257 4 Pinding the value of abond www hefur C-Codech . *** Cantaran R- No Force KF Vled freeds teremtett PVC- Asenschwan- vo IL Prat Value of per Pulled ferro espero PwC -1. The ait. ldeo present of Pola Petyperlod PVC Ayo how Mar wody reporter D DWI N TA dorpedo M 0 *** were D. Kilo) R. Maling Multiple Fordony Gividend hawdd growthree catrem ng and the present Penchmark PEEPS Bendance Salatex Sa Dar VT ind Return The red can be when the sum ofings #D/P. where the dividenduld the cold which The www dividends for the way with me FV-PV C+ t YTM= FV+PV 2 Where: C-Interest/coupon payment FV - Face value of the security PV - Present value price of the security - How many years it takes the security to reach maturity
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