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Assuming a return on stocks of 16%, what is the value of a company that pays a fixed dividend of $2.78 forever? Assuming a return
Assuming a return on stocks of 16%, what is the value of a company that pays a fixed dividend of $2.78 forever?
Assuming a return on stocks of 13%, what is the value of a company that pays a current dividend of $3.20 and will grow at 6% for 2 years and then 4% forever?
2. Calculate the price of a bond given the following info:
a. Face Value = $1000 Coupon = 4% Maturity = 10 years YTM = 4%
b. Repeat but at a YTM = 6%
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