What is the price of the stock for pharsalus inc

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Problem 1: Pharsalus Inc. just paid a dividend (i.e., D0) of $ 3.51 per share. This dividend is expected to grow at a rate of 7.5 percent per year forever. The appropriate discount rate for Pharsalus's stock is 15.9 percent. What is the price of the stock?

Problem 2: Calculate the current price of a $5,000 par value bond that has a coupon rate of 10 percent, pays coupon interest quarterly (i.e., 4 times per year), has 19 years remaining to maturity, and has a current yield to maturity (discount rate) of 4 percent.

Reference no: EM132952496

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