1. Stock. What is the value of a stock with a
a. $2.50 dividend just paid and an 8% required return with 0% growth?
b. $3 dividend just paid and a 8% required return with 2% growth?
c. $7 dividend to be paid and a 10% required return with 2% growth?

2. Stock. What is the required rate of return on a stock with a
a. $2.50 expected dividend and a $19 price with 6% growth?
b. $2.75 expected dividend and a $20 price with 8% growth?
c. $2.50 expected dividend and a $19 price with 9% growth?

3. Stock. What is the growth rate of the stock with a
a. $3.00 expected dividend and a $20.60 price with 15% required return?
b. $2.40 expected dividend and a $25.35 price with 10% required return?
c. $2 expected dividend and a $8.30 price with 11% required return?

Bonds
1. Bond. What is the value of a $1,000 par value bond with annual payments of an
a. 10% coupon with a maturity of 10 years and a 15% required return?
b. 8% coupon with a maturity of 10 years and a 8% required return?
c. 11% semiannual coupon with a maturity of 20 years and a 11% required return?
d. 8% semiannual coupon with a maturity of 20 years and a 9% required return?

2. Bond. What is the yield to maturity of a $1000 par value bond with an
a. 10% annual coupon and 10 years to maturity and a $1,000 price?
b. 9.5% annual coupon and 20 years to maturity and a $788 price?
c. 5.0% annual coupon and 8 years to maturity and a $800 price?


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