Cassey Computer Ltd. has an outstanding issue of bond with a par
value of $1,000, paying 8 percent coupon rate
semi‑annually. And, the company just paid a dividend of
$2.70 per share. The dividends are expected to grow at 5.0 percent
for next 2 years. i.e. year 1 and 2, and after year 2, dividends
are estimated to grow at 4 percent thereafter
indefinitely. Based on market information, government
bond’s yield for 10-year maturity is 5 percent, market expected
return is 15...