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offer 9% yields, what must municipals offer for the investor to prefer them to corporate 15. An investor is in a 30% combined federal plus
offer 9% yields, what must municipals offer for the investor to prefer them to corporate 15. An investor is in a 30% combined federal plus state tax bracket. If corporate bonds bonds? (LO 2-1) IIIa. 19. Consider the three stocks in the following table. P, represents price at time t, and Q, represents shares outstanding at time t. Stock C splits two-for-one in the last period. (LO 2-2) Pe QO P P2 Q2 A 90 100 95 100 95 100 B 45 200 45 200 50 100 200 200 110 200 55 400 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (1 = 0 to 1 = 1). b. What must happen to the divisor for the price-weighted index in year 2? c. Calculate the rate of return of the price-weighted index for the second period (1 = 1 10 1 = 2)
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