in all yours answers show all the calculation you made
Question 10 (10 marks)
What is the market Risk Premium if the treasury bond (government
bond) return is 2,25% and the average stock required return is
7%?
Question 11 (10 marks)
If you invest today in a bank account €1,000 at an annual
interest rate of 2,5%, to how much your investment will grow after
six years?
Question 12 (10 marks)
How much do you need to invest today in a bank account earning
an annual interest rate of 3.75%if you want to have €10,000 in five
years?
Question 13 (10 marks)
A bond maturing in 10 years with a value at maturity of
€10,000pays an annual interest of 5%. Calculate the value of the
bond if the required return is 5%?
Question 14 (10 marks)
The share (Common Stock) of Omicron (Public Company) Limited is
expected to pay after one year a dividend of 18 cents per share.
The minimum expected rate of return for an investor is 6%and the
expected constant annual dividend growth rate is 3.5%.
What is the ‘fair’ current market price of the share for the
investor?
in all yours answers show all the calculation you made Question 10 (10 marks) What is the market Risk Premium if the tre
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