Bond valuation, yield to call, YTM, constant growth, nonconstant growth, corporate valuation. See the attached pdf files. Please show all calculations and respond only to questions which are circled.
1) Constant Growth: You are condsidering an investment in Keller Corp's stock, which is expected to pay a dividend of $2.00 a share at the end of year (D1=$2.00) and has a beta of 0.9. The risk free rate is 5.6%, and the market risk premium is 6%. Keller currently sells for $25.00 a share, and its dividend is expected to grow at