# Abc Enterprises’ Stock Is Expected To Pay A Dividend Of $0.3 Per Share.

ABC Enterprises’ stock is expected to pay a dividend of $0. 3 per share. The dividend is projected to increase at a constant rate of 5. 9% per year. The required rate of return on the stock is 19. 6%. What is the stock’s expected price 3 years from today (i. e. solve for P3)?Assume that you wish to purchase a 19-year bond that has a maturity value of $1,000 and a coupon interest rate of 8%, paid semiannually. If you require a 4. 79% rate of return on this investment (YTM), what is the maximum price that you should be willing to pay for this bond? That is, solve for PV. ABC Inc. , is expected to pay an annual dividend of $4. 4 per share next year. The required return is 17. 5 percent and the growth rate is 4. 6 percent. What is the expected value of this stock five years from now?ABC wants to issue 8-year, zero coupon bonds that yield 7. 61 percent. What price should they charge for these bonds if they have a par value of $1,000? That is, solve for PV. Assume annual compounding. Hint: zero coupon bonds means PMT = 0The common stock of Connor, Inc. , is selling for $77 a share and has a dividend yield of 3. 9 percent. What is the dividend amount?The 5. 16 percent, $1,000 face value bonds of Tim McKnight, Inc. , are currently selling at $1,015. 32. What is the current yield?Stealers Wheel Software has 9. 99% coupon bonds on the market with nine years to maturity. The bonds make semi-annual payments and currently sell for 104. 68% of par. What is the current yield?ABC just paid a dividend of D0 = $2. 8. Analysts expect the company’s dividend to grow by 32% this year, by 24% in Year 2, and at a constant rate of 7% in Year 3 and thereafter. The required return on this stock is 13%. What is the best estimate of the stock’s current market value?The 13. 34 percent coupon bonds of the Peterson Co. are selling for $1,125. 43. The bonds mature in 5 years and pay interest semi-annually. These bonds have current yield of _____ percent. ABC’s last dividend paid was $1. 7, its required return is 18. 6%, its growth rate is 7%, and its growth rate is expected to be constant in the future. What is Sorenson’s expected stock price in 7 years, i. e. , what is P7?The common stock of Wetmore Industries is valued at $24. 9 a share. The company increases their dividend by 3. 7 percent annually and expects their next dividend to be $5. 3. What is the required rate of return on this stock?ABC has issued a bond with the following characteristics: Par: $1,000, Time to maturity: 19 years, Coupon rate: 5%,Assume semi-annual coupon payments. Calculate the price of this bond if the YTM is 5. 16%