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You will get down vote if you copy the answer from other questions or get it wrong QUESTION 1 Jarett & Sons's common stock currently
You will get down vote if you copy the answer from other questions or get it wrong
QUESTION 1 Jarett & Sons's common stock currently trades at $50.00 a share. It is expected to pay an annual dividend of $5.00 a share at the end of the year, and the constant growth rate is 4% a year. If the company issued new stock, it would incur a 10% flotation cost. What would be the cost of equity from new stock? O 12.5% 14.8% 15.1% 13.4% QUESTION 2 Assume expectations hypothesis is true. Today, a 1-year bond has an annualized rate of return of 10% per year. A 2-year bond has an annualized rate of retur per year. A 3-year bond has an annualized rate of return of 15% per year. What is the forward rates for a 1-year bond in the second year? 21,2% 20.4% 25.9% 14.0% QUESTION 3 In 2015, GOOG had a Price/Eamings ratio of 37. Its cost of capital was roughly 10%. What does the market believe its growth rate will be? 8.5% 9.8% 5.0% 7.3% Interest rates on 4-year Treasury securities are currently 8.0%, while 6-year Treasury securities yield 7.75%. If the pure expectations theory is correct, wha mrket believe that 2-year securities will be yielding 4 years from now? 6.57% 8.32% 9.88% 7.25%
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