What is the value of the common stock under scenario

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1. Stock ACRE has an expected growth rate of 12% for the first 2 years and 5% thereafter. Each share of stock just received an annual $2.00 dividend per share. The appropriate discount rate is 10%. What is the value of the common stock under this scenario?

2. You are purchasing a 30-year, zero-coupon bond. The yield to maturity is 8.68 percent and the face value is $1,000. What is the current market price?

3. A treasury bond is quoted at a price of 104.8640. What is the market price of this bond if the face value is $5,000?

Reference no: EM131997735

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