Question: b) What is the effective duration and convavit, far Assume an interest rate rise of 100bp ( 6 marks) c) James Malone, CFA covers GNTX

b) What is the effective duration and convavit, far Assume an

b) What is the effective duration and convavit, far Assume an interest rate rise of 100bp ( 6 marks) c) James Malone, CFA covers GNTX stock, which is currently trading at $45.00 and just paid a dividends of $1.40. Malone expects the dividend growth rate to decline linearly over the next 6 years from 25% in the short un to 6% in the long run. Malone estimates the required return on GNTX to be 13%. What is the value of GNTX? (7 marks)

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