What is the current share price

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1. Bayou Okra Farms just paid a dividend of S3.95 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a return of 14 percent for the first three years, a return of 12 percent for the next three years, and a return of 10 percent thereafter. What is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Current share price

2. A 30-year bond issued 15 years ago with a face value of $1000 is currently trading at $864.10. The bond pays semi-annual coupons at the coupon rate of 6%. What is your YTM? (Provide your answer in percentage without the % sign.)

Reference no: EM131980581

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