4. What is the value of a common stock that recently paid a $1.50 dividend...

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4. What is the value of a common stock that recently paid a $1.50 dividend per share, and has a constant growth rate of 6% if the discount rate is 11.5%? a. $15.38 c. $28.91 b. $27.27 d. $31.80 5. Wine and Roses, Inc. offers a 6.5 percent coupon bond with annual payments and the discount rate is 4.25 percent. The bonds mature in 12 years. What is the market price of a $1,000 face value bond? a. $984.96 c. $1,142.86 b. $1,091.73 d. $1,208.13

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