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a) If a semi-annual coupon bond of 15 years pays a 8.1% coupon, has a face value of GH 1,000 and the discount rate is
a) If a semi-annual coupon bond of 15 years pays a 8.1% coupon, has a face value of GH 1,000 and the discount rate is 11.1%, compute its current price. (b) Common shares of J. Industries ltd. will grow at 16.1% for three years. The growth will drop to 13.5% for another two years. It will later drop to 7.5% and remain constant thereafter. It just paid a dividend of GH 0.39. If the cost of equity is 13.1%, then compute its price. (c) The firm has 17-year preference shares with a dividend rate of 9.7% with a par value of GH 950. If the discount rate is 11.9%, what should be its fair value
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