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A 9% annual coupon paying bond of Ron Ltd will mature after 8 years. The bond will return $1,000 at maturity and is currently selling
A 9% annual coupon paying bond of Ron Ltd will mature after 8 years. The bond will return $1,000 at maturity and is currently selling at $1,052.50. Calculate the yield to maturity for this bond. Analysts anticipate that the earnings and dividends of Son Ltd shares will grow at 20% for the next 2 years before settling down to a constant 7% growth rate. The market expects 12% returns from this Son share that has just paid a dividend of $2.50 per share. What price is expected for the Son share by the analysts
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