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1. Using a 5% discount rate and a 4% growth rate calculate the companys value according to the Dividend growth model. Please show work so
1. Using a 5% discount rate and a 4% growth rate calculate the companys value according to the Dividend growth model. Please show work so that I can understand how to solve.
2. Calculate the value of the following bonds, please show work:
- 10-year bond, with $1000 principal, a coupon rate 9% and discount rate 12%
b) 5-year bond, with $1000 principal, a coupon rate 3.5% and discount rate 5.5%
c) 30-year bond, with $1000 principal, a coupon rate of 7.5% and discount rate of 7.5%
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