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4 . Consider the following two financial assets: A US stock that is expected to pay a dividend of $ 7 0 next year, $
Consider the following two financial assets:
A US stock that is expected to pay a dividend of $ next year, $ in year $ in year with dividend growth expected to be per annum thereafter;
A US corporate bond with an annual coupon rate of par face value of $ and maturity in years time.
If the required return on similar US equities is and on similar US bonds is calculate the value of the US stock and the US bond.
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