What is the investor willing

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1. An investor wishes to know what the value of a common stock is if it pays a dividend of $7.00 today. The company's dividend growth rate is 5.5% and the investor expects the stock to earn 7%. What is the value?

2. If a common stock is worth $80 and the dividend growth rate is 5% with a dividend expected to pay $2.00 in a year's time, what is the expected rate of return?

3. An investor wishes to know what the value of preferred stock, when the dividend is $3.00 per share and the expected rate of return is 6.5%? Debt and interest rates

1. A bond issued with a face value of $1,000 pays a 5% coupon rate and matures in seven years. If an investor wants a yield of 5%, what is the investor willing to pay for the bond?

2. An investor wants to know what the yield to maturity is for a $1,000 bond with a 4.5% coupon rate that matures in 5 years if the current market price is $955? 3. A $1,000 bond matures in six years. The coupon rate is 6% and interest is paid semi-annually. The current market price is 1,075. What is the yield?

Reference no: EM131707191

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