Contrast the fisher effect and international fisher effect

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Reference no: EM132069416

1. Assume that the expected dividend on each share of common stock is K 5. Each share of common stock is currently trading at K50 and has an expected growth rate of 7%. What is the yield on common stock?

2. Compare and contrast the fisher effect and the international fisher effect.

3. What should be the price of a bond paying 4.5% interest semiannually with 9 years to maturity when the market interest rate is 2.5%?

4. Which of the following is not a mechanism used by a board of directors and shareholders to get managers to act in shareholders' best interests?

a. Threat of firing.

b. Managerial compensation.

c. S corporation.

d. Threat of takeover.

Reference no: EM132069416

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