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KINZIS HAS ONE SHARE OF STOCK AND ONE BOND. The total value of the two secruities is $1,100. The bond has a YTM of 8.20
KINZIS HAS ONE SHARE OF STOCK AND ONE BOND. The total value of the two secruities is $1,100. The bond has a YTM of 8.20 %, a coupon rate of 7.40% and a face value of $1,000. The bond matures in 11 years and pays annual coupons with the next one expected in 1 year. The srock is expected to pay an annual dividen every year forever, the next dividend is expected to be $14.57 in 1 year, all subsequent dividends are expected to grow ar the same annual growth rate and the expected return for the stock is 14.32%. What is rhe annual growth raye of tbe stocks dividends expected to be?
other question will save this response he has one share of stock and one bond. The total value of the cars and pays annual coupons with the next one expected in you Dividends are expected to grow at the same annual growth rate, zaro 2.5.07% (plus or minus 0.02 percentage points) 6.10.80% (plus or minus 002 percentage points) C.931% (plus or minus 0.02 percentage points) d.6.29% (plus or minus 0.02 percentage points) CA e. None of the other alternatives is within 0.02 percentage points Step by Step Solution
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