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29. Suppose a firm paid an annual dividend of $5. We expect dividends to grow at 6% per year. The firm has a beta of
29. Suppose a firm paid an annual dividend of $5. We expect dividends to grow at 6% per year. The firm has a beta of 7. The required rate of return is 14%. What is the intrinsic value of the firm?
30.Suppose the underlying stock prices at option maturity is $39 and stock price when buying the option is $34, what is the profit for buying a protective put option with strike price of $33 and a premium of $9?
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