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7 years ago, you bought shares of ABC Ltd. at a unit price of $15. Today, you could resell these shares at a unit price
7 years ago, you bought shares of ABC Ltd. at a unit price of $15. Today, you could resell these shares at a unit price of $25. Knowing that the company has just paid you a dividend of $1.50 per share, calculate the effective annual rate of return on your investment? ABC Company Ltd, currently has outstanding bonds with the following characteristics: Annual coupon rate is 10% (interest is paid semi-annually) Due date: in 12 years Market value is 874.50 2. Given the rate of return you demand, what is the maximum price you should pay for an ABC Company LId. bond? iour calculations in detail
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