pretty pls help with both Jefferson's recently paid an annual dividend of $4 per share. The dividend is expected to decrease by 5% each year. How much should you pay for this stock today if your required return is 12% (in $ dollars)?$. Bernard co. has 9% coupon bonds on the market that have 18 years left to maturity. The bonds will make annual payments. If the YTM on these bonds is 5%, what is the current bond price (in $ dollars)?(Assume the face value of the bond is $1,000) $_

Given information part a) Dividend paid (D0)=$4Growth rate (g)=-5%Required return (r)=12%

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pretty pls help with bot

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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pretty pls help with both

Jefferson's recently paid an annual dividend of $4 per share. The dividend is expected to decrease by 5% each year. How much should you pay for this stock today if your required return is 12% (in $ dollars)?
$.

Bernard co. has 9% coupon bonds on the market that have 18 years left to maturity. The bonds will make annual payments. If the YTM on these bonds is 5%, what is the current bond price (in $ dollars)?
(Assume the face value of the bond is $1,000) $_

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