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Levi Company Ltd has been experiencing a period of rapid growth. Dividends are expected to grow at a rate of 10% during the next 2

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Levi Company Ltd has been experiencing a period of rapid growth. Dividends are expected to grow at a rate of 10% during the next 2 years, at 8% in the third year and at a constant rate of 6% thereafter. Their last dividend was $2.50 and the required rate on the company's stock is 12%. The stock currently trades for $49.75 per share on the stock exchange. In January 2020, the company's investment grade bond of $20 million at $1,000 par, had 25 years to mature, with a semiannual coupon rate of 6% and a yield to maturity of 8%. The company has been hit hard by the impact of covid-19. General interest rate have declined from governments' monetary response to economic stability. The company also suffered a downgrade from Moody's Bond Rating Agency to a Baa3. Bonds with similar risk, return a 12% yield to maturity, given the increased level of risk. Prior to covid-19 these options appeared to be very attractive investment options for your client but now he wants to get an update on the performance of his portfolio. As his investment advisor, assess your clients investment portfolio to ascertian the potential of realizing a loss. A. Determine the current market value of the company's stock. B. How much is the change in the value of the bond after the downgrade? C. How would you summarize your client's current investments

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