Gamma Ltd is not expecting to pay dividends for three years, at the end of year four, a dividend of $2.00 is planned and dividends are expected to...

1. Gamma Ltd is not expecting to pay dividends for three years, at the end of year four, a dividend of $2.00 is planned and dividends are expected to be constant forever after that. The required rate of return for Gamma Ltd equity is 14% pa. What is the current price of Gamma Ltd’s shares?2. A debenture with a face value of $1,000 is selling for $966. The coupon is 10% pa paid semi-annually. What is the annual effective yield if the debenture has three years to maturity?3. What is the present value (PV0) of an annuity of five annual payments of $5,000, with the first payment made now? The discount rate is 12% pa.