$23.83 Question 8 (1 point) Blue Jeans Inc. is a newly listed company on the...
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$23.83 Question 8 (1 point) Blue Jeans Inc. is a newly listed company on the TSX. The CEO has released a plan for their expected dividends which will be $1.10 next year and then grow at a 20% growth rate for the following four years. After that, the dividend is expected to grow at a sustainable growth rate of 2.5% per year forever. If the expected return on comparable investments is 7%, what is the estimate for the stock price today? $41.06 $50.32 $38.67 O $43.59 $4.039 6 $4,288 Question 6 (1 point) You have been given the following coupon yield curve: Maturity (years) 1 2 3 4 0% 8% |10% 12% Coupon Rate (annual payments) YTM 1.5% 2.31% 3.10% 4.12% Use arbitrage to determine the YTM of a two-year, zero coupon bond. (Hint: The price of a one year zero coupon bond with face value of $80 is $78.81.) 1.35%
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