What is expected value of this stock ten years from now

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1. SRS, Inc. just paid an annual dividend of $1.52 last month. The required return is 13 percent and the dividend growth rate is expected to be constant at 2 percent. What is the expected value of this stock ten years from now?

2. The Holmes Company's currently outstanding bonds have a 8% coupon and a 13% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 40%, what is Holmes's after-tax cost of debt? Round your answer to two decimal places. %

Reference no: EM132053186

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