Question: Question 4 Answer the question. (a) Moors Inc. dividends are expected to increase 8% annually for the next 3 years, followed by a constant annual

Question 4 Answer the question. (a) Moors Inc. dividends are expected

Question 4 Answer the question. (a) Moors Inc. dividends are expected to increase 8% annually for the next 3 years, followed by a constant annual growth rate of 5% to infinity. Knowing last year dividend of $1.80 per share and required return of 11%, what is the value of Moors share? (5 marks) (b) Shiba Inc. issued a 10-year bond with a par value of $1,000 and a coupon rate of 5 percent payable semiannually. If the required return is 6 percent, how much are you willing to pay for this bond

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