The dividend growth rate is decreased

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Reference no: EM132047271

1. How will the price of a stock be affected if the dividend growth rate is decreased?

1- increase, 2- decrease, 3- no change,4- either increase or no change, 5- either decrease or no change.

2. A U.S. company (firm XYZ) enters into a currency swap in which it pays a fixed rate of 5.0 percent on a notional principal of €90 million, while a dealer pays a fixed rate of 5.5 percent a notional principal of $100 million, with semiannual payments based on 30 day months and 360 days per year for both parties; the parties exchange notional principals at the beginning of the swap period. The semiannual payment from firm XYZ to the dealer would be:

€2,025,000

€2,250,000

€2,475,000

€2,700,000

€2,925,000

Reference no: EM132047271

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