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