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Allison's wants to raise $10 million to expand its business. To accomplish this, it plans to sell 25-year, $1,000 face value, zero-coupon bonds. The bonds

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Allison's wants to raise $10 million to expand its business. To accomplish this, it plans to sell 25-year, $1,000 face value, zero-coupon bonds. The bonds will be priced to yield 7 percent, with annual compounding. What is the minimum number of bonds the firm must sell to raise the $10 million it needs? Rosita's announced that its next annual dividend will be $1.65 a share and all future dividends will increase by 2 percent annually. What is the maximum amount you should pay to purchase a share of this stock if you require a rate of return of 12 percent?(show your work)

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