Calculate the current price of bond using annual compounding

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1) Crazy Corpration has a $1000 par value bond outstanding paying annual interest of 5%. The bond matures in 15 years. If the present yield to maturity for this bond is 7%, calculate the current price of the bond using annual compounding.

2) Calculate a firm's WACC given that the firm has $600,000 of debt and $1,400,000 of equity. The cost debt and equity is 10% and 15% respectively, and the firm pays no taxes..

3) What would you estimate to be the required rate return for equity investors if a stock price is $40.00 and will pay a $4.40 dividend that is expected to grow at a constant rate of 5%?.

Reference no: EM131554656

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