Please try and answer ALL questions with work.

9. Ace Frisbee Corporation produces a good that is very mature in their product life cycles Ace Frisbee Corporation is expected to pay a dividend in year 1 of S3.00, a dividend in year 2 of $2.00, and a dividend in year 3 of S1.00. After year 3, dividends are expected to decline at the rate of 290 per year. An appropriate required return for the stock is 8% How much is one share of Ace's stock worth today? (9) 10. You are examining two bonds. Bond A is a 9.875 % coupon semi-annual bond that matures in 20 years. Bond B is a 20 eazero-coupon bond. The yield to maturity for each bond is 7.50% and the par value for each is $1,000. (9) a. For each bond indicate if it is a premium bond, discount bond, or par bond. b. What is the current price of each bond? c. Plot the price path for each bond from now until maturity 11-You read in the Wall Street Journal today that the real risk free rate is 2.74%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: Inflation Premium-3.25%; Liquidity Premium = 0.6%; 10-year Maturity Risk Premium 1.8%; and Default Risk Premium = 2.15%. What is the rate on a 10-year US Treasury bond and what is the rate on a 10-year corporate bond? (9) 12. Shares of Home Depot common stock are currently selling for $169.05. The last annual dividend paid was $3.98 per share and its required rate of return is 8.5090 percent. At what rate is the dividend growing? (9)