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26. Using the following template, compare and contrast the following 3 investments and their valuation when the prevailing interest rate in the market is 8%:(A)
26. Using the following template, compare and contrast the following 3 investments and their valuation when the prevailing interest rate in the market is 8%:(A) a perpetuity from an insurance company of $100 annually; (B) a 10-year non-callable bond with a 12%-coupon rate and $1,000 par value; (C) Ten (10) shares of common stock with expected dividend of $0.625 per share next year and constant dividend growth rate of 7.5% annually thereafter
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