1. Calculate the value of a share of stock that is expected to pay $1 dividend at t=1, with dividends expected to grow at a constant rate of 2% per year forever thereafter. Use 14.5% as the discount rate.a. $10.00 b. $6.90 c. $6.87 d. $8.00 e. $50.003. Moonlight Over LaLa Land (MOLL) Co. bonds pay an annual coupon of 9.5%. They have 8 years to maturity and a face value of $1,000. Compute the value of MOLL’s bonds if investors’ required rate of return is 10%.a. $1,516.18 b. $1,027.17 c. $973.33 d. $950.006. Old Imbalance Footwear, Inc., stock pays $3.20/share each year in dividends, with investors’ required return equaling 10%. What is the price of a share of stock?a. $320 b. $16 c. $328. Calculate the value of a 1-year zero-coupon bond (i.e. a bond with a coupon rate equal to 0%) that has a face value of $1000. Use a required rate of return of 25% in your calculation.a. $800 b. $1250 c. $750

1. Calculate the value of a share of stock that is expected to pay $1 dividend at t=1, with dividends expected to grow at a constant rate of 2% per year forever thereafter. Use 14.5% as the discount rate.a. $10.00 b. $6.90 c. $6.87 d. $8.00 e. $50.003. Moonlight Over LaLa Land (MOLL) Co. bonds pay an annual coupon of 9.5%. They have 8 years to maturity and a face value of $1,000. Compute the value of MOLL’s bonds if investors’ required rate of return is 10%.a. $1,516.18 b. $1,027.17 c. $973.33 d. $950.006. Old Imbalance Footwear, Inc., stock pays $3.20/share each year in dividends, with investors’ required return equaling 10%. What is the price of a share of stock?a. $320 b. $16 c. $328. Calculate the value of a 1-year zero-coupon bond (i.e. a bond with a coupon rate equal to 0%) that has a face value of $1000. Use a required rate of return of 25% in your calculation.a. $800 b. $1250 c. $750

1. Calculate the value of a share of stock that is expected to pay $1 dividend at t=1, with dividends expected to grow at a constant rate of 2% per year forever thereafter. Use 14.5% as the discount rate.a. $10.00 b. $6.90 c. $6.87 d. $8.00 e. $50.003. Moonlight Over LaLa Land (MOLL) Co. bonds pay an annual coupon of 9.5%. They have 8 years to maturity and a face value of $1,000. Compute the value of MOLL’s bonds if investors’ required rate of return is 10%.a. $1,516.18 b. $1,027.17 c. $973.33 d. $950.006. Old Imbalance Footwear, Inc., stock pays $3.20/share each year in dividends, with investors’ required return equaling 10%. What is the price of a share of stock?a. $320 b. $16 c. $328. Calculate the value of a 1-year zero-coupon bond (i.e. a bond with a coupon rate equal to 0%) that has a face value of $1000. Use a required rate of return of 25% in your calculation.a. $800 b. $1250 c. $750