What is the stockholders expected rate of return

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Reference no: EM131993669

1. On January 28th 2018, 12 CyberMont bond that matures on July 28th 2033 (Face value = $1,000) was sold at $1,187.362758. Its yield to maturity was 7.00 percent compounded semi-annually. Given these information, what the annual coupon rate of this bond?

2. XYZ Corp. just paid a dividend today of $6.25 per share. The dividend is expected to grow at a constant rate of 5.5% per year. If XYZ Corp. stock is selling for $40.00 per share, what is the stockholders' expected rate of return? Submit your answer as a percentage and round to two decimal places.

Reference no: EM131993669

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