Albert, Inc. stock is $42.00 per share. The company's quarterly dividend is forecasted as $0.50 per share, increasing 10.0% at the start of every year

What is the price of a zero-coupon equity-linked bond, promising to pay one share in 3 years, given annual interest rates of 8.0%?

A)

$32.60

B)

$36.20

C)

$42.60

D)

$62.40


Answer:

B

Business

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