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2. Consider a stock priced at $25 with an Earnings Per Share (EPS) of $2. If you anticipate no growth opportunities for this company, implying
2. Consider a stock priced at $25 with an Earnings Per Share (EPS) of $2. If you anticipate no growth opportunities for this company, implying that the EPS will remain stagnant, how does this compare to a bond offering a 9% annual coupon payment, with a 30-year maturity and sold at par value (where the selling price equals the principal)? Which investment would you prefer? Please provide your reasoning
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