Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a)broke benjamin co. has a bond outstanding that m

A)Broke Benjamin Co. has a bond outstanding that makes semiannual payments with a coupon rate...

70.2K

Verified Solution

Question

Finance

A)Broke Benjamin Co. has a bond outstanding that makes semiannual payments with a coupon rate of 5.8 percent. The bond sells for $974.17 and matures in 14 years. The par value is $1,000. What is the YTM of the bond?

3.04%

5.77%

6.08%

5.47%

4.56%

b)The common stock of Eddie's Engines, Inc., sells for $27.51 a share. The stock is expected to pay a dividend of $2.40 per share next year. Eddie's has established a pattern of increasing their dividends by 4.5 percent annually and expects to continue doing so. What is the market rate of return on this stock?

5.55%

18.76%

11.46%

13.22%

8.72%

c)Kindzi Co. has preferred stock outstanding that is expected to pay an annual dividend of $4.60 every year in perpetuity. If the required return is 4.49 percent, what is the current stock price?

$95.62

$98.05

$107.05

$92.20

$102.45

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students