Question
I have meet two questions when I doing my homework, please help me for this and thanks in advance. 1.Into Eternity Co. plans to pay
I have meet two questions when I doing my homework, please help me for this and thanks in advance.
1.Into Eternity Co. plans to pay a dividend of $3 per share next year. If the expected long-run growth rate of the dividends is 5% per year and the required rate of return is 11%, what is the stock price per share today?
2.Which of the following statements is most FALSE?
A.The clean price of a bond is different from the actual cash price.
B. Investment grade bonds are bonds rated at least BB by S&P or Ba by Moodys.
C. All else equal, a callable bond would have a higher required return than a non-callable bond.
D. Market expectations of interest rates affect the shape of the yield curve.
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