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Author Question: An increase in borrowing from long-term debt holders is a source of cash. Indicate whether the ... (Read 126 times)

michelleunicorn

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on: Jul 10, 2018
An increase in borrowing from long-term debt holders is a source of cash.
 
  Indicate whether the statement is true or false.

Question 2

Julian is considering purchasing the stock of Pepsi Cola because he really loves the taste of Pepsi.
 
  What should Julian be willing to pay for Pepsi today if it is expected to pay a 2 dividend in one year and he expects dividends to grow at 5 percent indefinitely? Julian requires a 12 percent return to make this investment.
  A) 28.57
  B) 29.33
  C) 31.43
  D) 43.14


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elizabethrperez

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: TRUE

Answer to Question 2

A


michelleunicorn

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

Sarahjh

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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