I'll like the right answer, i've limited time thank you. Q1. Zevon, Inc., has...
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I'll like the right answer, i've limited time thank you.
Q1. Zevon, Inc., has 9 percent coupon bonds on the market that have 8 years left to maturity. The bonds make annual payments and face value equals to $1000. If the yield to maturity on these bonds is 7 percent, what is the current bond price? A) $1.119,419 B) $1.050,326 C) $997, 812 D) $1.265,521 Q2. Merton Enterprises has bonds in the market making annual payments and face value equals to $1000. What must the coupon rate be on Merton's bonds if the yield to maturity 6.8 percent, selling price $1051, and 16 years left to maturity? A) $73,329 B) 7,332% C) $63.329 D) 6,332% Q3. Antiques 'R' Us is a mature manufacturing company. This firm just paid a $7 dividend, but management expects to reduce the payout by 5 percent per share, indefinitely. If you require a 10 percent return on this stock, what will you pay for a share today? A) $49 B) $44.33 C) $133 D) $46.66 Q4. The current dividend payment by Carroll, Inc. is $1.40 per share. The dividends are anticipated to maintain a 6 percent growth rate forever. If the stock currently sells for $47.00 per share, what is the required return? A) 3.1% B) 6% C) 9.1% D) 8.2%
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