Question 9 Not yet answered Points out of 10.0 We used the DCF Model (r (Di/Po)+8) to estimate the required rate of return on common

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Question 9 Not yet answered Points out of 10.0 We used the DCF Model (r (Di/Po)+8) to estimate the required rate of return on common equity. Which of the following assumptions does the model include? Select one: O O O O O a. Growth is assumed to be constant to infinity b. The required rate of return must exceed the assumed growth rate c. The firm must pay a dividend to use this model d. Two of the above are assumptions of the model e. All of three are assumptions of the model P Flag question Question 10 Not yet A firm is about to raise debt capital with a new bond issue. They could issue a 10-year bond with a 5% annual coupon with no special features or covenants. Altermatively, they could issue a 10-year bond that is convertible into common equity and has several restrictive covenants. Which of the following most accurately describes the coupon rate on the convertible bond? Points out of 100 Select one: Flag question a. It could be more or less than 5%. b. there's no way to estimate the likely coupon rate U . it will likely be exactly equal to 5%