Dawn,IncStock Is $37

question 12

Multiple Choice

Dawn,Inc.stock is $37.00 per share.The company's semi-annual dividend is forecasted as $0.25 per share,increasing every 6 months by 20.0%.What is the price of a zero-coupon equity-linked bond,promising to pay one share in 4 years,given annual interest rates of 6.0%?

• A) $32.29
• B) $33.49
• C) $34.39
• D) $35.69

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