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Question 10 1 pts What is the price of a stock who just paid a dividend of $2.00 per share assuming the following: the growth
Question 10 1 pts What is the price of a stock who just paid a dividend of $2.00 per share assuming the following: the growth rate in the dividend is expected to be 20% per year for 3 years the normal growth rate in the dividend (i.e. after 3 years are up) is 5% per year and will go on indefinitely the appropriate discount rate is 9% Question 2 1 pts The discounted cash flow model for bonds: O uses the required rate of return to discount all promised bond cash flows O uses the coupon interest rate to discount bonds O computes the future value of all cash flows O is the present value of all coupon dividends
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