Author Question: Roderick received a 100 savings bond for his graduation. The bond pays 100 at maturity, which is in ... (Read 141 times)

anjilletteb · **on:** Jun 29, 2018

Roderick received a 100 savings bond for his graduation. The bond pays 100 at maturity, which is in five years. If the interest rate is 6, the bond has a present value of 90.09.

Indicate whether the statement is true or false

Question 2

If a company pays a dividend of 2 to be received one year from now, dividends are expected to grow at a rate of 3 percent per year for the indefinite future, and the interest rate is 4 percent, the price of the company's stock should be ________ per

share.
A) 3.40 B) 28.57 C) 200.00 D) 340.00