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

A

Business

You might also like to view...

In Japan, intimate scenes between men and women are in bad taste, and in Saudi Arabia, such ads are outlawed

Indicate whether the statement is true or false

View
Business

Explain how the United States Postal Service has "competitor myopia."

What will be an ideal response?

View
Business