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What is the value of one stock of xyz today

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You have a portfolio that consists of 2000 stocks of XYZ, 1000 stocks of ABC and 100 corporate bonds. XYZ has just paid a dividend of $10 and it is estimated that it will continue to do so in perpetuity. It has a required return of 7%. ABC has just paid a dividend of $5 which you envisage will grow at 10% for 2 years and then 2% in perpetuity. It has a required return of 5%. Your corporate bonds pay 5% coupons semi-annually and currently have a yield of 10%. They will mature in 10 years.

-What is the value of one stock of XYZ today?

-What is the value of one corporate bond today?

-What is the value of one stock of ABC today?

-What are the weightings of your portfolio?

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Reference no: EM133062273

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