NikkiG’s Corporation’s 10-year bonds are currently yielding…

NikkiG’s Corporation’s 10-year bonds are currently yielding a return of 6.40 percent. The expected inflation premium is 1.10 percent annually and the real risk-free rate is expected to be 2.80 percent annually over the next ten years. The liquidity risk premium on NikkiG’s bonds is 0.25 percent. The maturity risk premium is 0.25 percent on 4-year securities and increases by 0.04 percent for each additional year to maturity. Calculate the default risk premium on NikkiG’s 10-year bonds. (Round your answer to 2 decimal places.)

A firm is expected to pay a dividend of $3.05 next year and…

A firm is expected to pay a dividend of $3.05 next year and $3.35 the following year. Financial analysts believe the stock will be at their price target of $120 in two years. Compute the value of this stock with a required return of 13.3 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.)