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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answerhappygod
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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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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?
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