A. If a company lists its stock price at Php100, has a required rate of return at 15% (r), pays a dividend of Php1.50 per share, and has a constant growth rate of 6%. What would be the stock value using Discounted Cash Flow Method? B. Find the value of a corporate bond with par value of Php 100 with an annual interest rate of 8%, making semi-annual payments for 2 years, after which the bond matures and the principal must be repaid. Assume a yield to maturity (YTM) of 5%.

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
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A. If a company lists its stock price at Php100, has a required rate of return at 15% (r), pays a dividend of Php1.50 per share, and has a constant growth rate of 6%. What would be the stock value using Discounted Cash Flow Method? B. Find the value of a corporate bond with par value of Php 100 with an annual interest rate of 8%, making semi-annual payments for 2 years, after which the bond matures and the principal must be repaid. Assume a yield to maturity (YTM) of 5%.
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