1. The next year the common stock of Gold Corp will pay a dividend of 2.10 per share. If the company is growing at a rate of 4.03 percent per year and your required rate of return is 15% what is gold’s company stock worth to you? Round the answer to two decimal places.
2. Golden Rod Corp’s preferred stock is currently selling for $65.36. The company pay $5.42 annual dividends on this preferred stock. Which rate of return does the investor expect to receive on this stock if the stock is purchased today? Round the answer to two decimal places in percentage form.
3. Black Water Corp. just issued zero-coupon bonds with a par value of $1,000. The bonds has a maturity of 29 years and a yield to maturity of 10.83 percent, compound annually. What is the current price of bonds? Round the answer to two decimal places.