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Author Question: Baldwin Corp just paid a dividend of 2.00. Over the next two years, this dividend is expected to ... (Read 120 times)

michelleunicorn

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Baldwin Corp just paid a dividend of 2.00. Over the next two years, this dividend is expected to growth by 20 per year. After two years, dividend growth is expected to level off at 10.
 
  If the required rate of return on Baldwin stock is 12, what should be the price of Baldwin stock today?
  A) 130.72
  B) 128.57
  C) 158.40
  D) 31.68
  E) 163.68

Question 2

Treasury notes and bonds are zero-coupon bonds that sell at a discount while Treasury bills have coupon payments.
 
  Indicate whether the statement is true or false.



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johnpizzaz

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Answer to Question 1

A

Answer to Question 2

Answer: FALSE
Explanation: Treasury notes and bonds are COUPON bonds while Treasury bills are zero-coupon securities that sell at a discount.




michelleunicorn

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Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it


emsimon14

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Reply 3 on: Yesterday
:D TYSM

 

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