All of the following are examples of research questions with the exception of…

You are a finance intern at Chambers and Sons. They have asked you to help estimate the company’s cost of common stock if they need to sell new shares of common stock. You obtained the following data: D1 = $1.55; P0 = $27.50; g = 5.00% (constant); and F = 6.00%. What is the cost of stock if the firm issues new common stock?

A stock is expected to pay a dividend of $1.93 at the end of the year. The current stock price is $32.00, and growth (which is constant) = 4.61%. What is the stock’s expected total return for the coming year?

A 15-year bond has an annual coupon rate of 8%.  The coupon rate will remain fixed until the bond matures.  The current market rates for the bond is 6%.  Which of the following statements is CORRECT?

 If a burglar breaks into a house, rapes one of the occupants, and flees in the owners’ car, which crime(s) will be counted in congruence with the hierarchy rule?

Perry Inc.’s bonds currently sell for $1,150. They have a 6-year maturity, the coupon is 8.5%, and a par value of $1,000. What is their current yield (CY)?

A stock is expected to pay a dividend of $1.90 at the end of the year. The current stock price is $32.00, and growth (which is constant) = 4.6%. What is the expected dividend yield for this stock?

If XYZ has a WACC of 12%, should it accept the following project? The project cost $500 now (t=0) and will produce $100 at the end of year 1, $200 at the end of year 2, and $300 at the end of year 3.

The Jameson Company expects to pay a dividend $1.85 per share (D1 = $1.85), and expected growth is 3.50% per year in the future. The company’s beta is 1.25, the market risk premium is 5.00%, and the risk-free rate is 3.50%. (Suppose markets are in equilibrium). What is Jameson’s current stock price, P0?

Meacham Enterprises’ bonds currently sell for $1,280 and have a par value of $1,000. They pay a $135 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,050. What is their yield to call (YTC)?