7. Capital One has just paid a dividend of $3, which is expected to grow at 5% next year, 6% in the following year, and
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7. Capital One has just paid a dividend of $3, which is expected to grow at 5% next year, 6% in the following year, and
7. Capital One has just paid a dividend of $3, which is expected to grow at 5% next year, 6% in the following year, and then 4% thereafter. If the required rate of return is 10%, what is the current price of the Capital One stock? 8. A 5-year maturity, 10% coupon bond paying coupons monthly is callable in 2 years at a call price of $1,075. The bond currently sells at a yield to maturity of 12% per year. a. What is the yield to call? b. What is the yield to call if the call price is $1,125 and the bond can be called in 1 year instead of 2 years?
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