Question: please help me!!! 3. The table below shows the yields to maturity on a number of two-year, zero-coupon securities. What is the credit spread on

please help me!!!
please help me!!! 3. The table below shows the yields to maturity

3. The table below shows the yields to maturity on a number of two-year, zero-coupon securities. What is the credit spread on a two-year, zero-coupon corporate bond with a B rating? Security: Treasury AAA Corporate BBB Corporate B Corporate Yield (%): 5.2 5.4 6.8 7.2 A. 2.4% C. 2.8% B. 2.0% D. 1.6% 4. Sultan Services has 1.2 million shares outstanding. It expects earnings at the end of the year of $6.0 million. Sultan pays out 60% of its earnings in total: 40% paid out as dividends and 20% used to repurchase shares. If Sultan's earnings are expected to grow by 5% per year, these payout rates do not change, and Sultan's equity cost of capital is 10%, what is Sultan's share price? A. $12.00 C. $36.00 B. $24.00 D. $60.00 5. You expect KT industries (KTI) will have earnings per share of $5 this year and expect that they will pay out $1.25 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 13% and their equity cost of capital is 15%. The expected growth rate for KTI's dividends is closest to A. 11.3% C. 5.9% B. 9.8% D. 3.9% 6. Which of the following statements is FALSE of the dividend-discount model (DDM)? A. We cannot use the DDM to value the stock of a firm with rapid or changing growth. B. As firms mature, their growth slows to rates more typical of established companies. C. The dividend-discount model values the stock based on a forecast of the future dividends paid to shareholders. D. The simplest forecast for the firm's future dividends states that they will grow at a constant rate, i.e., forever. 1

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