FIN722 Midterm Current Paper 19 Dec 2017
Current paper of mine 2017
Bond issued for 20 year at 8% coupon payment market rate is 16 % semianualy face value of bond 1000 calculate PV of Bond & Effective yield of the Bond Coupon?
Capital rationing hard rationining factors?
1. Cost of preffered stock and common stock:
Paid dividend of Rs. 5 per share, growth rate of 5%. Assuming investor’s required rate of return on the company’s stock is 10%.
Required: Calculate the following:
a) Current value of stock
b) Value of stock after three year