Question 4 Hightower Pharmacy just paid a $3.10 annual dividend. The company has a policy of increasing the dividend by 4.2 percent annually. You would like to purchase 100 shares of stock in this firm but realize that you will not have the funds to do so for another four years. If you require a 16 percent rate of return, how much will you be willing to pay per share for the 100 shares when you can afford to make this investment? [removed] $31.50 [removed] $32.27 [removed] $33.12 [removed] $33.78 [removed] $34.47 Question 5 The common stock of Auto Deliveries sells for $28.16 a share. The stock is expected to pay $1.35 per share next year when the annual dividend is distributed. The firm has established a pattern of increasing its dividends by 3 percent annually and expects to continue doing so. What is the market rate of return on this stock? [removed] 7.42 percent [removed] 7.79 percent [removed] 19.67 percent [removed] 20.14 percent [removed] 20.86 percent Question 6 An 8 percent corporate bond that pays interest semi-annually was issued last year. Which two of the following most likely apply to this bond today if the current yield-to-maturity is 7 percent?I. a structure as an interest-only loanII. a current yield that equals the coupon rateIII. a yield-to-maturity equal to the coupon rateIV. a market price that differs from the face value [removed] I and III only [removed] I and IV only [removed] II and III only [removed] II and IV only [removed] III and IV only Question 7 The bonds issued by Stainless Tubs bear an 8 percent coupon, payable semiannually. The bonds mature in 11 years and have a $1,000 face value. Currently, the bonds sell for $952. What is the yield to maturity? [removed] 7.87 percent [removed] 7.92 percent [removed] 8.08 percent [removed] 8.69 percent [removed] 9.20 percent Question 8 Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15 percent a year for the next 4 years and then decreasing the growth rate to 3.5 percent per year. The company just paid its annual dividend in the amount of $0.20 per share. What is the current value of one share of this stock if the required rate of return is 15.5 percent? [removed] $1.82 [removed] $2.04 [removed] $2.49 [removed] $2.71 [removed] $3.05 Question 11 Miller Brothers Hardware paid an annual dividend of $0.95 per share last month. Today, the company announced that future dividends will be increasing by 2.6 percent annually. If you require a 13 percent rate of return, how much are you willing to pay to purchase one share of this stock today? [removed] $9.23 [removed] $9.37 [removed] $9.67 [removed] $9.72 [removed] $9.88 Question 12 Dexter Mills issued 20-year bonds a year ago at a coupon rate of 10.2 percent. The bonds make semiannual payments. The yield-to-maturity on these bonds is 9.2 percent. What is the current bond price? [removed] $985.55 [removed] $991.90 [removed] $1,042.16 [removed] $1,089.02 [removed] $1,098.00 Question 15 Redesigned Computers has 6.5 percent coupon bonds outstanding with a current market price of $832. The yield to maturity is 16.28 percent and the face value is $1,000. Interest is paid semiannually. How many years is it until these bonds mature? [removed] 2.10 years [removed] 4.19 years [removed] 7.41 years [removed] 9.16 years [removed] 18.32 years Question 16 Green Roof Inns is preparing a bond offering with a 6 percent, semiannual coupon and a face value of $1,000. The bonds will be repaid in 10 years and will be sold at par. Given this, which one of the following statements is correct? [removed] The bonds will become discount bonds if the market rate of interest declines. [removed] The bonds will pay 10 interest payments of $60 each. [removed] The bonds will sell at a premium if the market rate is 5.5 percent. [removed] The bonds will initially sell for $1,030 each. [removed] The final payment will be in the amount of $1,060. Question 19 O…
Looking for a solution written from scratch with No plagiarism and No AI?
WHY CHOOSE US?
We deliver quality original papers |
Our experts write quality original papers using academic databases.We dont use AI in our work. We refund your money if AI is detected |
Free revisions |
We offer our clients multiple free revisions just to ensure you get what you want. |
Discounted prices |
All our prices are discounted which makes it affordable to you. Use code FIRST15 to get your discount |
100% originality |
We deliver papers that are written from scratch to deliver 100% originality. Our papers are free from plagiarism and NO similarity.We have ZERO TOLERANCE TO USE OF AI |
On-time delivery |
We will deliver your paper on time even on short notice or short deadline, overnight essay or even an urgent essay |