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Greg Inc. company stock is expected to grow at a constant rate indefinitely. The company stock is currently priced at $50 and just paid a
Greg Inc. company stock is expected to grow at a constant rate indefinitely. The company stock is currently priced at $50 and just paid a dividend of $4. If the required rate of return is 1896, what is the constant growth rate for Greg Inc.? (Hint: if you're stuck, plug in the choices). O A. 3.4196 OB. 5.5096 OC. 9.2696 OD. 12.596 QUESTION 3 What should be the price for a common stock paying $4.50 annually in dividends if the growth rate is zero and the discount rate is 10%? A. $43.75 OB. $37 O C. $45 OD. $42 QUESTION 4 What is the amount of the annual coupon payment for a bond that has 8 years until maturity, sells for $1,150, and has a yield to maturity of 9.3797 O A. 121.17 OB. 108.63 O C. 130.18 OD. 104.97
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