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Your best friend Janet is an expert in monetary policy. She informs you that interest rates will decline in the near future even though the

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Your best friend Janet is an expert in monetary policy. She informs you that interest rates will decline in the near future even though the bond market is not indicating any sign of this change. Based on Janet's information, which one of the following bonds should you purchase now to maximize your profits? Multiple Choice Long-term; high coupon. Long-term; zero coupon Long-term; low coupon Short-term; high coupon. You own shares in four different companies. You own: Preferred shares in Company A, a 10 year old company and the smallest in its industry. Common shares in Company B, a start-up firm with negative cash flow from assets. Common shares in Company C, a 60 year old company which increases dividends to keep pace with inflation. Common shares in Company D, a 20 year old company which increases dividends by $0.20 each quarter. Common shares in Company E, a 45 year old company which will pay a liquidating dividend of $20 in 9 more quarters. Which is the stock most likely stock to be valued as a growing perpetulty? (Click to select)

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