1. Do you think an investor/company would use all of the use at the same time for a balanced portfolio? Explain
2. If you were investing, which would you prefer to use: supernormal dividend growth model or a supernormal growth stock? Explain
3. You bought AAA bonds yielding 5% with 20 years to maturity when the interest rates were 4%. After 8 years you sold these bonds when inter rates were 8% Compute the gain or loss on this transaction, interest compounded annually?