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Norma has one share of stock and one bond. The total value of the two securities is 1.223.3 dollars. The stock pays annual dividends. The

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Norma has one share of stock and one bond. The total value of the two securities is 1.223.3 dollars. The stock pays annual dividends. The next dividend is expected to be 4.46 dollars and paid in one year. In two years, the dividend is expected to be 8.4 dollars and the stock is expected to be priced at 119.75 dollars. The stock has an expected retum of 12.07 percent per year. The bond has a coupon rate of 11.58 percent and a face value of 1,000 dollars, pays semi-annual coupons with the next coupon expected in 6 months and matures in 10 years. What is the YTM of the bond? Answer as a rate in decimal format so that 12.34% would be entered as 1234 and 0.98% would be entered as 0098 Number I White Mountain Food stock pays quarterly dividends and has an expected annual return of 10.2 percent. The stock is expected to have a price of 60.04 dollars in 3 months from today and is expected to have a price of 60.96 dollars in 6 months from today. What is the current price of White Mountain Food stock if the firm is expected to pay quarterly dividends forever and the quarterly dividend in 3 months from today is expected to be 2.83 dollars? Number

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