Project #3720 - Practical Financial Management Quiz 5

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1.Valuation - preferred stock

What is the value of a share of preferred stock that pays a $4.50 dividend, assume k is 10%.

 

2.Valuation – zero-coupon bond

 

A U.S. Government bond with a face amount of $10,000 with 13 years to maturity is yielding 5.5%. What is the current selling price?

 

3.Valuation – corporate bond

A $1,000 corporate bond with 20 years to maturity pays a coupon of 7% (semi-annual) and the market required rate of return is a) 6.6% b) 13%. What is the current selling price for a) and b)?

 

4.

Valuation – corporate bond

A $1,000 corporate bond with 10 years to maturity pays a coupon of 8% (semi-annual) and the market required rate of return is a) 7.2% and b) 10%. What is the current selling price for a) and b)?

 

5.  Valuation - preferred stock

What is the value of a share of preferred stock that pays a $9.50 dividend, assume k is 12%.

Subject Business
Due By (Pacific Time) 4/3/13 1000
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