Calculate the price of the following stocks, if the required rate of return is 10%....
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Calculate the price of the following stocks, if the required rate of return is 10%.
-Common stock that pays 20 euro dividend every year for next three years with
constant growth of 8% and then it grows 5% thereafter.
-A convertible preferred stock that pays 10 euro dividend every year for next 10
years and it converts into a common stock with the same dividend payout every
year thereafter.
-A convertible preferred stock that pays 10 euro dividend every year for next 10 years with the constant growth rate of 4% and it converts into a common stock
with the same dividend payout scheme every year thereafter.
-A convertible preferred stock that pays 10 euro every year for next 10 years with the constant dividend and it converts into a common stock that pays 5 euro
dividend over the coming year and that grows by 5% every year thereafter.
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