A coupon bond that pays interest semi-annually has a par value of $1,000, matures in 7 years, and has a yield to maturity of 11%. The intrinsic value of the bond today will be __________ if the coupon...

1.The most appropriate discount rate to use when applying a FCFE valuation model is the __________. (Points : 4)
           required rate of return on equity
       WACC
       risk-free rate
       required rate of return on equity or risk-free rate depending on the debt level of the firm
       None of these is correct
    2. An analyst has determined that the intrinsic value of Dell stock is $34 per share using the capitalized earnings model. If the typical P/E ratio in the computer industry is 27, then it would be reasonable to assume the expected EPS of Dell in the coming year is _____. (Points : 4)
           $3.63
       $4.44
       $14.40
       $1.26
       None of these is correct
34*1/27=1.26
    
    3. You are considering acquiring a common stock that you would like to hold for one year. You expect to receive both $3.50 in dividends and $42 from the sale of the stock at the end of the year. The maximum price you would pay for the stock today is _____ if you wanted to earn a 10% return. (Points : 4)
           $23.91
       $24.11
       $26.52
       $27.50
       None of these is correct
10 = (42 - P + 3.50) / P; .10P = 42 - P + 3.50; 1.1P = 45.50; P = 41.36.
    
    4. Zero had a FCFE of $4.5M last year and has...