Author Question: The stock valuation model D1/(rcs - g) requires the stock to grow at a rate greater than the ... (Read 71 times)

ec501234 · **on:** Jul 10, 2018

The stock valuation model D1/(rcs - g) requires the stock to grow at a rate greater than the required
return; otherwise, the stock is worthless.

Indicate whether the statement is true or false

Question 2

Andre owns a corporate bond with a coupon rate of 8 that matures in 10 years. Ruth owns a
corporate bond with a coupon rate of 12 that matures in 25 years. If interest rates go down, then

A) the value of both bonds will increase.
B) the value of both bonds will remain the same because they were both purchased in an earlier
time period before the interest rate changed.
C) the value of Ruth's bond will decrease more than the value of Andre's bond due to the longer
time to maturity.
D) the value of Andre's bond will decrease and the value of Ruth's bond will increase.

BAOCHAU2803 · **Reply #1 on:** Jul 10, 2018

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

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