Determine current stock price, Corporate Finance

Determine current stock price:


1) IBM issued 10-year bonds with a par value of $1,000 and a coupon rate of 10%, paid semiannually. The yield to maturity on this bond is 12%. What is the present value of the coupon? Is the bond price greater or less than the face value ($1,000)?


2) Microsoft will pay its dividends of $6 in 2014 and $7.2 in 2015. It plans to pay its dividends of $24 after 2015 permanently. If the required return is 20 percent, what is the stock price in 2015? And what is the current stock price in 2013?

Posted Date: 2/12/2013 1:11:42 AM | Location : United States







Related Discussions:- Determine current stock price, Assignment Help, Ask Question on Determine current stock price, Get Answer, Expert's Help, Determine current stock price Discussions

Write discussion on Determine current stock price
Your posts are moderated
Related Questions
Method is the ?rst of two methods proposed by Mantrala and Rao (2001) and has been reviewed in Section 2.We use a simpli?ed version, with ?xed prices and for a single period. Furth

MOUNTAIN BLEND SPECIALITY COFFEE CO Mountain Blend Speciality Coffee Co, a listed company, is the largest coffee wholesaler and roaster in Carvania. At present it is solely invo

Based on its Net Present Value (NPV), should the following project be accepted?  Please assume a discount rate of 10%.

Critically appraise how companies set their dividend policies, and explain the factors that a company will consider in setting its dividend policy and in determining the level of d

Robert Shapprio Leasing CO (40% tax rate) I determining leae rate for a number of equipment . it is allowed to use the following accelerated depreciation rate 3 years: 25%   38%

Question: (a) (i) De ne net premium and state the equation for net premium. (ii) Arshad, aged exactly 50, buys a 15-year endowment assurance policy with a sum assured of $ 5

QUESTION Assume Venture Healthcare sold bonds that a 10 year maturity, a 12% coupon rate with annual payments, and a $1,000 par value. a. Suppose that two years after the bo

Table gives the average MAPE, again for all SKUs with positive preview demand together (overall) and also per preview demand class. We remark that despite of the large differences

Analyse the budget shown below, and discuss any issues raised regarding cash flow and legal requirements. Suggest at least three alternative courses of action the organisation cou

A-Note is the highest tranche of an asset backed security or another structured financial product. An A-note is superior to other notes, like B-notes in bankruptcy or other credit