Question: please someone help me solve the two questions !!! 9. The current dividend of MultiGrowth Inc. is $1.5. The company is expected to grow rapidly
9. The current dividend of MultiGrowth Inc. is $1.5. The company is expected to grow rapidly for the next 3 years at 30%, at the end of which time the new growth rate is expected to be a constant 8% a year. The required rate of return is 15%. What is the intrinsic value of the firm? A. $39.21 B. $39.50 C. $38.68 D. $39.59 10. Consider the following short sale example: an investor borrows 100 shares of a stock from the broker, put down 50% as the initial margin, and sells the stock at $100/share in the market. Suppose the stock price later goes up from $100/share to $150/share, put a _may limit the potential loss for the investor. A. limit sell order at $120/share B. limit buy order at $120/share C. stop buy order at $120/share D. stop loss order at $120/share
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