1. A 9-year bond with a face value of 1000 dollars is redeemable at par and earns interest at 10.3 percent convertible semiannually. Find the price to yield an investor 7.7 percent convertible semiannually.
Answer = dollars. (3 decimal place)
2. Huang Company's last dividend was $1.25. The dividend growth rate is expected to be constant at 15% for 2 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its current stock price?