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Suppose that on January 1, 2014, you bought 100 shares of M.Co for $100 per share with the expectation of receiving a perpetual dividend of $10 per share. On January 1, 2015, M.Co announces that it will increase its annual dividend to $20 per share. Upon announcement, the stock price rises to $200.
-If you sold the shares on January 1,2015,what would be your return?
Coupon Rate
The interest rate stated on a bond or fixed-income security that represents the annual interest paid to the bondholder.
Investment Bankers
Professionals who work in financial institutions, helping companies and governments with raising capital, mergers, and acquisitions.
Straight Bonds
Conventional bonds that pay a fixed interest rate over their lifetime and return the principal at maturity, without any special features or options.
Implied Value
The estimated value of an asset or investment derived from models or market prices rather than direct measurement.
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