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fast all total amount QUESTION 1 Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different types of Bonds
fast all total amount
QUESTION 1 Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different types of Bonds and Stocks. After studying the market, he decided to choose 3 bonds and 3 stocks. Given the following information: Bonds: The financial manager wants to buy bonds A, B, C and he decided to buy different numbers from each bond. All bonds pay annual coupon Type Coupon Maturity Bond YTM Number of Bonds 28 rate 5.5% Face Value 3000 A 7.4% 19 years B 22 21 Discount Bond Par Bond Premium Bond 15 years 19 years 3000 2000 9.3% 5.0% Stocks: The financial manager wants to buy Stocks X, Y, Z and he decided to buy different numbers from each stock. Number of Dividends Required Growth Dividends Type Stock Stock 2400 Retum 16% Dividends 0 3.4 Y 1900 10% 1.8 Zero Growth Constant Growth Constant Growth Z 1600 12% 5% 2 Calculate the total amount of investment the company needs to buy the 3 bonds and the 3 stocks. Total Amount Step by Step Solution
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