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Question 7 1 pts UoA Ltd just reported earnings per share (EPS) of $4.5. The share has a price earnings ratio of 50. Analysts expect
Question 7 1 pts UoA Ltd just reported earnings per share (EPS) of $4.5. The share has a price earnings ratio of 50. Analysts expect that one year from now the company will still have an EPS of $4.5, and it will pay its first dividend of $2 per share. The share has a required return of 10%. What price earnings ratio must the share have one year from now so that investors realise their expected return? 54.56 O 225 49.9 245.5 Question 8 1 pts Short term bonds tend to have lower yields than that of long term bonds because: short term bonds are more exposed to liquidity risk than long term bonds O holders of long term bonds benefit most from a rise of interest rates O long term bonds are more price sensitive than short term bonds O long term bonds are less price sensitive than short term bonds
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