1. The last paid dividend of the company is $5 The beta coefficient of this company...
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1. The last paid dividend of the company is $5 The beta coefficient of this company is 0,8 The risk-free rate is 2% The market return is 8% What is the theoretical price of the share if the dividend is expected to grow 3% annually 2.In June 1998 the government of the RF had issued 20-year Eurobonds with a fixed annual coupon rate of 11%. The par value $1000, issued number 3500000. In June 2016 they were being traded with a YTM 4,6%. What was the theoretical price (net) of these bonds in the market in June 2016? 1. The last paid dividend of the company is $5 The beta coefficient of this company is 0,8 The risk-free rate is 2% The market return is 8% What is the theoretical price of the share if the dividend is expected to grow 3% annually 2.In June 1998 the government of the RF had issued 20-year Eurobonds with a fixed annual coupon rate of 11%. The par value $1000, issued number 3500000. In June 2016 they were being traded with a YTM 4,6%. What was the theoretical price (net) of these bonds in the market in June 2016?
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SOLUTION To calculate the theoretical price of the share we can use the dividend discount model P D ... View the full answer
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
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