Wayne,IncStock Is $40

question 1

Multiple Choice

Wayne,Inc.stock is $40.00 per share.The company's quarterly dividend is forecasted as $0.45 per share,indefinitely.A coupon equity-linked bond,promising to pay one share of Wayne,Inc.in 3 years pays a quarterly coupon of $0.50.If annual interest rates are 4.0%,what is the price of the bond?

• A) $40.56
• B) $42.60
• C) $44.56
• D) $46.60

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Definitions:

Public Notice

An official announcement issued to the public through various media outlets to inform about legal proceedings, government actions, or other significant matters.

Third Parties

Individuals or groups besides the two involved in a transaction or legal case, often indirectly affected by the outcome.

Security Interest

A rephrased definition: A financial security provided by a debtor to a creditor as a guarantee for repayment of a loan, often involving a lien on an asset.

Attachment

A legal procedure by which a court of law, at the request of a creditor, designates specific property owned by the debtor to be transferred to the creditor, or sold for the benefit of the creditor.