What would the stocks price be if growth was five percent

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Problem 1: A bond that matures in 8 years has a par value of P1000 and an annual coupon payment of P70; its market interest rate is 9%. What is its price? Round to 2 decimal places.

Problem 2: A bond that matures in 12 years has a par value of P1000 and annual coupon of 10% the market interest rate is 8%. What is its price. Round to 2 decimal places.

Problem 3: Firm A is expected to pay dividend of $1.00 at the end of the year. The required rate of return is 11%. Other things held constant, what would the stocks' price be if the growth was 5%? Round to 2 decimal places.

Reference no: EM132826612

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