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Thank you for all question:) Q30) Suppose you look in today's Wall Street Journal and see that the stock price of PaperCo. is $51. If
Thank you for all question:)
Q30) Suppose you look in today's Wall Street Journal and see that the stock price of PaperCo. is $51. If International Paper's growth rate is expected to be 5.25% forever, has a dividend yield of 3,3% and an EPS of $3, how much value must the investors be placing to the company's growth opportunities? (Ans. $15.91) Q31) What can you discuss about the price of a 8% semi-annual coupon bond with a yield to maturity of 9%? Q32) Calculate the profitability index for the below projects and indicate your order of choices. (You should explain your reasoning as well) Project PV Investment L S4 mil. $3 mil. M 6 mil 5 mil N 10 mil. 7 mil. O 8 mil. 6 mil. P 5 mil. 4 mil. (Ans. N. L or O, P, M) If you have $10 mil. of funds, indicate your investment choices? (Ans. N and L)Step by Step Solution
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