Find value of the bond for midland utilities

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Problem 1: Midland Utilities has outstanding a bond issue that will mature to its RM1,000 par value in 12 years. The bond has a coupon interest rate of 11 percent and pays interest annually. Find value of the bond if the required rate of return is 15 percent.

Problem 2: Nadayu Bhd's share dividend at the end of this year is expected to be RM 2.50 per share and it is expected to grow at 11 percent in perpetuity. If the required rate of return is 15 percent per year, compute the value of common share.

Reference no: EM132745931

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