question 45

Etling Inc.'s dividend is expected to grow at 7% for the next two years and then at 3% forever. If the current dividend is $3 and the required return is 16%, what is the price of the stock?

Select one:

a. $25.10

b. $26.15

c. $27.58

d. $25.54

e. $29.45

question 39

This morning, Alicia bought a ten-year 6% coupon bond that pays interest semi-annually. She paid $994 for a $1,000 bond. If the market interest rate on this type of bond declines to 5.5% tonight, how much will Alicia receive for her first interest payment?

Select one:

a. $60.00

b. $35.00

c. $69.58

d. $30.00

e. $65.00