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Marshall is considering purchasing one of two potential investments. The first is a SlickRock bond with 12-year maturity and 10% coupon that has a current
Marshall is considering purchasing one of two potential investments. The first is a SlickRock bond with 12-year maturity and 10% coupon that has a current price of $975.61. The second option is to buy stock in DryBeach. DryBeach just issued a $1.50 dividend and expects to grow at 6.5%. The current stock price for DryBeach is $35.64. If both investments are fairly priced and he plans to hold the investment indefinitely, which offers Marshall a higher return?
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