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What is the current value of the firm shares

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Q1) Due to the current global economic conditions, Zoro Ltd stopped its dividend payments. Dividends of $3.75 are expected to start again in five years and are expected to increase at a rate of 4% per year thereafter. If the required rate of return is 11%, what is the current value of the firm's shares?

Q2) An issue of bonds with par of $1000 matures in 12 years and pays interest at 7% annually. The current quoted market price is $1200 and the investors required rate of return is 8%.

Reference no: EM133049519

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