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Discounted cash flow valuation questions Here is attach: Elsinore. Cu. is grossing quickly. Nu dividends are expectcdllfssr. This disidsndiuyearwlllhe $4. The dividend is than uxpccmd

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Discounted cash flow valuation questions

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Elsinore. Cu. is grossing quickly. Nu dividends are expectcdllfssr. This disidsndiuyearwlllhe $4. The dividend is than uxpccmd tu gmw st 1 constant 5% furusrer. If the required return is 14%, huw much are we. willing tu pay fur this stock (approximately) P a) $21 b) $4? s) 523:1: :1) $33 as} $51 We purchased a 30-year zen: coupon bond. Bands at similar risk mt: paying 5 I5 pcmnt tctum. Haw much interest would we haw: to rcpntt for tax purpnscs in the: rst year holding this bond (apptmtimntcli' a} $1** b] $1?!) 1:) $130 d) :43 a} The bond dost t pay a tampon EU than: is no tax. A. Tim-:051.10:}r bland 00.115 f0]: 3956.45 wi: 0 00119011 0f 10%. Thu: are 3|]. years t0 mamty, and the cuncnt yield in matury 0n this bond is 1D.4%. What is that Timur? hon-21's capital gains yield {appmximatcly a} 0.4393 0) 10.00% c} 0.02%" d) 10.40% 0} 0.0500 Ynu purchase a band with a coup-D11 rate [If 3%, semiannual coupons and a dirtyF {invoice} prim: af $935.1f thc 1111111 caupn payment is in 111.11: 11111111115, what is the clean (quoted) price (apprmatel? a} 110-3511} 1:} 111111.57 1:) $993.33 11} $9" .15?" 1:} $953.33

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