Question: Please help with the two problems below. 1. Elon Automotive plans to issue bonds to fund the construction of a new plant. The bonds will

Please help with the two problems below.

1. Elon Automotive plans to issue bonds to fund the construction of a new plant. The bonds will mature in 30 years and have a coupon rate of 5.50% with semi-annual coupon payments (assume a par value of $1,000 on the bond). The current yield-to-maturity for similar bonds is 5.64%. The company hopes to raise $80 million with the new issue. To raise the debt, how many bonds must the company issue? (Round to the nearest whole number).

2. Next year, Bach Airline is expected to pay a dividend of $8.00 (i.e., D1 = 8.00). Dividends are expected to grow at the rate of 15% per year. The risk-free rate of return is 6% and the expected return on the market portfolio is 14%. The stock of Bach Airline has a beta of 3.00. Based on this information, the equilibrium market value of Bach Airline stock is:

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