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Suppose that Jada Corp. stock is expected to pay a dividend of $0.75 at the end of the year and that the dividend is expected
Suppose that Jada Corp. stock is expected to pay a dividend of $0.75 at the end of the year and that the dividend is expected to grow at a rate of 7%. The companys current beta is 1.9, the current risk-free rate is 2.5% and the market risk premium is 8%. What is the intrinsic value of this stock?
$7.01 | ||
None of these | ||
$4.24 | ||
$10.71 | ||
$7.50 |
Gertrude Corp bonds have a 13% annual coupon, 7 years left until maturity, and they are currently selling for $1250. What is the yield to maturity of Gertrudes bonds?
8.00% | ||
15.24% | ||
None of these | ||
8.17% | ||
14.79% |
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