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a) b) c) D Elnareissed to invest $5,000 in a friend's business with the promise that the friend will repay $5.500 in one year's time.

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D Elnareissed to invest $5,000 in a friend's business with the promise that the friend will repay $5.500 in one year's time. Elinore finds her best alternative to this investment with similarik, is one that will pay her 55,400 in one year's time. U.S. securities of similar term offer a rate of return of 6% What is the opportunity cost of capital in this case? O A 10% Om os C. OD 6% Which of the following statements is FALSE of the dividend - discount model? O A The simplest forecast for the firm's future dividends states that they will grow at a constant rate, i.e., forever. B. We cannot use the dividend - discount model to value the stock of a fim with rapid or changing growth. OC. As fimms mature, their growth slows to rates more typical of established companies. OD. The dividend - discount model values the stock based on a forecast of the future dividends paid to shareholders

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