ording to the Gordon Model, the value of a common stock is the present value of

Question

ording to the Gordon Model, the value of a common stock is the present value of expected divide O True O False Acc QUESTION 11 Other things remaining the same, if the discount rate goes down, the value of a bond a. does not change O b. goes up O c. goes down d, any of the above is possible QUESTION 12 For a premium bond O a. Bo is less than M Ob. Bo is greater than M C.Bo is equal to M O d. none of the above SAVE AND SUBMIT Click Save and Submit to save and submít. Click Save All Answers to save all answers.

Explanation / Answer

1)

TRUE

2)

value of the bond goes up

3)

B0 is greater than M

( Assuming B0 is price and M is maturity)

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