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You expect Commodore Company's stock to pay its next dividend of $6.54 exactly one year from now. After this first dividend, future dividends will grow
You expect Commodore Company's stock to pay its next dividend of $6.54 exactly one year from now. After this first dividend, future dividends will grow at 4% for each of the subsequent 2 years and then 5% per year every year thereafter. What is Commodore's intrinsic value today? Use a discount rate of 9.1% and round your answer to the nearest penny. VolCo issues 5% coupon bonds for par value today. These bonds make semi-annual coupon payments and mature in 18 years. You buy one of these bonds for exactly $1,000. You hold the bond for 6 months, collect the coupon payment, and then sell the bond immediately therafter. If the bond's yield-to-maturity is 6.3% when you sell it, what is your percentage return (not annualized) over this 6-month holding period? Enter your answer as a decimal and show 4 decimal places. For example, if your answer is 6.25%, enter .0625
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