References Mailings Review View Acrobat Tell me Aa A Abcode Normal ADA Soading Aa Bbc Herdings Styles Pane Assignment Question(s): (Marks 5) Q1. ABC company is issuing eight-year bonds with a coupon rate of 6.5 percent and semiannual coupon payments. If the current market rate for similar bonds is 8 percent, what will be the bond price? If the company wants to raise $1.25 million, how many bonds does the firm have to sell? (1 mark) Ans: Q2. You are interested in purchasing the common stock of Inch, Inc., which is currently priced at $ 40. The company is expected to pay a dividend of $3 next year and to grow at a constant rate of 8 percent a What should the market value of the stock be if the required rate of retum is 15.75 percent? (1mark) b. Is this a good buy? Why or why not? (Imark) Ans Q3. Raneem owns shares in HP Inc. Currently, the market price of the stock is $36.34 Management expects dividends to grow at a constant rate of 6 percent for the foreseeable future. Its last dividend was $3.25. Raneem's required rate of return for such stocks is 16 percent. She wants to find out whether she should sell his shares or add to her holdings a. What is the value of this stock? (1 Mark) b. Based on your answer above, should Rancem buy additional shares in Honda Inc. Why or why not? (1 Mark) Focus h (United States) MacBook Air DIA DD 80 888 00 77 FB F3 F4 FS 76 % 8 99