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A) To finance a new line of product, the Emmar has issued $1,000,000 bond with a par value of $1.000. coupon rate of 8 percent,

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A) To finance a new line of product, the Emmar has issued $1,000,000 bond with a par value of $1.000. coupon rate of 8 percent, and maturity of 30 years. Coupon payments are made semiannually. Compute the price of the bond if the opportunity cost is 12 percent. B) Al Ain company is growing very fast in the last 20 years. Dividends are expected to grow at a rate of 11% in the next year, at 15% in the second year, and at a constant rate of 6% thereafter. Al Ain company last dividend was $1.2, and the required rate of return on the stock is 10%. Calculate the value of the stock today. PV = FV, (1 + r)" PV, Po=D1/rs-g, where DI= DO(1+g)

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