What is the expected return of stock-microsoft inc

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1. An investor is considering two bonds. One is a corporate bond yielding 12%, and is currently selling at par. The marginal tax rate is 28%. The other is a municipal bond with a coupon rate of 9.50%. Which should the investor choose?

2. Suppose Microsoft, Inc., is trading at $27.29 per share. It pays an annual dividend of $0.32 per share, 4 and analysts have set a one-year target price around $33.30 per share. What is the expected return of this stock?

3. Alfa international paid $2.00 annual dividend on common stock and promises that the dividend will grow by 4% per year. If the stock's market price for today is $20, what is required rate of return?

Reference no: EM133071454

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