Bank is an example of financial intermediary

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1. Q Corp is currently selling for $45 per share. Its dividends have been growing at a constant 3% per year. Next year it expects to pay a dividend of $2.25. What is its expected return (discount rate)?

2. A bank is an example of a financial intermediary. Explain the role of financial intermediaries and their usefulness to the private investor.

3. list five factors that influence the prices of calls and puts.

Reference no: EM131822002

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