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    ACF 103 - Fundamentals of Finance Tutorial 4 - Questions: Homework Problem

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    Riri Fahrani
    The document contains 9 questions about finance fundamentals from Chapter 4 of an ACF 103 textbook. The questions cover topics like calculating bond prices, stock prices, dividend growth rates, and bond coupon rates.

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    © All Rights Reserved
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    ACF 103 - Fundamentals of Finance Tutorial 4 - Questions: Homework Problem

    Uploaded by

    Riri Fahrani
    4 views1 page
    The document contains 9 questions about finance fundamentals from Chapter 4 of an ACF 103 textbook. The questions cover topics like calculating bond prices, stock prices, dividend growth rates, and bond coupon rates.

    Original Title

    ACF-103-Tutorial-4-Qns-2015

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    The document contains 9 questions about finance fundamentals from Chapter 4 of an ACF 103 textbook. The questions cover topics like calculating bond prices, stock prices, dividend growth rates, and bond coupon rates.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    4 views1 page

    ACF 103 - Fundamentals of Finance Tutorial 4 - Questions: Homework Problem

    Uploaded by

    Riri Fahrani
    The document contains 9 questions about finance fundamentals from Chapter 4 of an ACF 103 textbook. The questions cover topics like calculating bond prices, stock prices, dividend growth rates, and bond coupon rates.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
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    ACF 103 – Fundamentals of Finance

    Tutorial 4 - Questions
    Chapter 4
    1. How much should you pay for a zero-coupon bond with a 15-year maturity
    and $1,000 face value if you want an 11% return?

    2. NDV Corp.'s common stock is expected to pay a $2 dividend, which will grow
    at a compound rate of 4% indefinitely.
    a. If the market requires a 14% return, what should be the current market
    price of the stock?
    b. If the current market price of the stock is $40, what rate of return is the
    market requiring?

    3. The stock of Macbeth Cleaning Corp. is currently selling for $25 a share. The
    company is expected to pay a dividend of $0.75 at the end of this year. If you
    bought Macbeth stock today and sold it for $29 after receiving the dividend,
    what rate of return would you earn?

    4. You have just paid $1,063.65 for a bond with nine years remaining to
    maturity. Interest on the bond is paid semiannually. If the current rate of return
    for similar investments is a nominal 8%, what is this bond's coupon rate?
    Round your answers to two decimal places.

    5. Text book Ch 4 question # 1 (p.91)

    6. Text book Ch 4 question # 2 (p.91)

    Homework problem
    7. Text book Ch 4 question # 5 (p.91)

    8. Text book Ch 4 question # 6 (p.91)

    9. Text book Ch 4 question # 9 (p.92)

    ACF 103 HAUT 2015 1

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