Pay for rice stock today

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One bond in Forest, Inc., has 9 years to maturity and a coupon of 4.2%. The coupon is paid semiannually. If the YTM is 6%, what is the value of the bond?

Marcia Food Company has a bond with 15 years to maturity and a coupon rate of 6%. The coupon is paid annually. If the current price of the bond is $1,200, what is the YTM?

Rice, Inc., recently paid a dividend of $2.80 per share. The dividend on Rice's stock is expected to grow at a rate of 6% per year forever. Your required rate of return on Rice's is 11%. How much would you be willing to pay for Rice's stock today?

Reference no: EM131318518

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Pay for rice stock today : Rice, Inc., recently paid a dividend of $2.80 per share. The dividend on Rice's stock is expected to grow at a rate of 6% per year forever. Your required rate of return on Rice's is 11%. How much would you be willing to pay for Rice's stock today?
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