Discuss discounted dividend and corporate valuation model

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Question 1: A bond that pays interest forever and has no maturity is a perpetual bond. In what respect is a perpetual bond similar to a no-growth common stock? Are there preferred stocks that are evaluated similarly to perpetual bonds and other preferred issues that are more like bonds with finite lives? Explain.

Question 1:  Discuss the similarities and differences between the discounted dividend and corporate valuation models.

Question 2: Discusses the discounted dividend and corporate valuation models for valuing common stocks. Three alternative approaches, the P/E multiple, Enterprise Values, and EVA approaches, were presented. Explain each approach and how you might use each one to value a common stock.

Reference no: EM132900733

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