1. Critically analyze the strengths and weakness of different stock valuation methods: Discounted Cash Flow (DCF), Dividend Discount Model (DDM), Residual Income Model (RMI), and Valuation Ratios.
2. Bettanin Corporation recently issued 20-year bonds. The bonds have a coupon rate of 8 percent and pay interest semiannually. Also, the bonds are callable in 6 years at a call price equal to 115 percent of par value of $1,000. The par value of the bonds is $1,000. If the yield to maturity is 7 percent, what is the yield to call?