What is the value of share immediately after the company

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Stag Company will pay dividends of $4.75, $5.25, $5.75, and $7 for the next four years.Thereafter, the company expects its growth rate to be at a constant rate of 7 percent.If the required rate of return is 15 percent, what is the value of share immediately after the company makes the second dividend payment ($5.25)?

You own a bond with a $1000 face value that pays a 12.2% annualised semiannual coupon rate and has 10 years to maturity. If the discount rate increases from 14% to 16% during the next two years of the bonds life, then what is the bond's change in dollar value during the two-year period?

Reference no: EM132554425

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