Question: Q1) Joogle is high tech start up that is not expected to pay a dividend for 10 years. At year 11, you expect it to

 Q1) Joogle is high tech start up that is not expected

Q1) Joogle is high tech start up that is not expected to pay a dividend for 10 years. At year 11, you expect it to start paying an $8 dividend forever. For a 12% required return; a) What should you be willing to pay for Joogle today? b) What will its stock price be 3 years from today? (2) What is the value a semi-annual bond with a coupon rate of 10%, $1,000 face value, and 10 years to maturity, if its yield to maturity is 9%? Q3) What is the coupon rate of a semi-annual bond with a yield to maturity of 10%, $1,000 face value, and 20 years to maturity, if it currently sells for $914.20? Q4) Assume that a young start-up company will pay no dividends for the next 5 years. At year 6 it will pay a dividend of $2.00 per share which will grow by 5% a year for 2 years and then will grow at a rate of 3% indefinitely. If the required return is 10%, how much will you pay for a share today? Q5) The KLM bond has a 8% coupon rate (with interest paid semi-annually), a maturity value of $1,000, and matures in 5 years. If the bond is priced to yield 6%, what is the bond's current price? Q6) How much will you pay for a stock which pays a $2 dividend the first year, a $2.10 dividend the second year, and $2.21 in the third year if you will sell the stock for $40 after three years, assuming a market capitalization rate of 13%? (7) Pearson Co. is a mature manufacturing firm. The company just paid a $4.00 dividend, but the management expects to reduce this payout by 6% per year indefinitely. If the required rate of return on this stock is 15%, what will you pay for a share today? Q8) Reebeck Inc. is experiencing rapid growth. Dividends are expected to grow at 30% per year during the next 3 years: 20% over the following year, and then 6% per year indefinitely. The required return on this stock is 15%. If the projected dividend for the coming year is $2.39, what is the current price

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