ording to the Gordon Model the value of a common stock is th

ording to the Gordon Model, the value of a common stock is the present value of expected divide O True O False Acc QUESTION 11 Other things remaining the same, if the discount rate goes down, the value of a bond a. does not change O b. goes up O c. goes down d, any of the above is possible QUESTION 12 For a premium bond O a. Bo is less than M Ob. Bo is greater than M C.Bo is equal to M O d. none of the above SAVE AND SUBMIT Click Save and Submit to save and submít. Click Save All Answers to save all answers.

Solution

1)

TRUE

2)

value of the bond goes up

3)

B0 is greater than M

( Assuming B0 is price and M is maturity)