Question: QUESTION 2: (08) A. Complete the following table considering that all entries belong to pure discount bonds. Haal Online Ltd. Book The End Ltd. Paraishan

 QUESTION 2: (08) A. Complete the following table considering that all

QUESTION 2: (08) A. Complete the following table considering that all entries belong to pure discount bonds. Haal Online Ltd. Book The End Ltd. Paraishan Ltd. 12,500 Open Ltd. 25,000 2500 1,000 7 ? ? 12.5 Khush Ltd. Par value of 500 the bond (Rs.) Required rate 6 of return (%) Yield to 4 maturity (No.) Market value of bond (Rs.) 5 6 5 ? ? 1,958.5 18,376 702 B. ABC Co. reported income of Rs. 3 million with earnings per share of Rs. 9. The stock price is Rs. 12 per share. The return on equity from the past data is averaged as 14 percent which is expected to continue into the future. The next dividend is estimated to be Rs. 5 per share. Find a) growth rate using constant growth model and b) stock return

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