Business finance

1) Beck Co. stock currently sells for $50 per share. The next expected annual dividend is $2 and the growth rate is 6%. What is the expected rate of return on
this stock? If the required rate of return on this stock were 12% what would the stock price be and what would the dividend yield be?

2)What is the price of a $1000 par value bond with a 6% coupon rate paid semiannually if the bond is priced to yield 5% and it has 9 years to maturity? What
would be the price of the bond if the yield rose to 7%?

3) An investment will provide you with $100 at the end of each year for the next 10 years. What is the present value of that annuity if the discount rate is 8%
annually? What is the present value of the above if the payments are received at the beginning of each year?

4) You have $10000 to invest for five years. How much additional interest will you earn if the investment provides a 5% annual return when compared to a 4.5%
annual return?