Find what two assumptions can use dividend growth model

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Question 1. How does a bond issuer decide on the appropriate coupon rate to set on its bonds? Explain the difference between the coupon rate and the required return on a bond.

Question 2. What is the difference between the term structure of interest rates and the yield curve?

Question 3. What is the relationship between the price of a bond and its YTM?

Question 4. What are the three factors that determine a company's price-earnings ratio?

Question 5. Under what two assumptions can we use the dividend growth model to determine the value of a share of stock? Comment on the reasonableness of these assumptions.

Question 6. Why might a company choose not to pay dividends?

Reference no: EM132995450

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