# C48-Additional-sample-questions-Ch7.doc

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University of Toronto Scarborough

Economics for Management Studies

MGEC71H3

Jack Parkinson

Spring

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ECMC48 Sample Questions1Explain in words how pricing a stock is similar to pricing a bond Assume the stock is held for n periods and then is sold AND does not pay any dividends What kind of bond is this like Hint You may write down the mathematics if this helps2Explain in words how pricing a stock is similar to pricing a bond Assume the stock is held for n periods and then is sold AND pays a dividend of D per year What kind of bond is this like Hint You may write down the mathematics if this helps3Explain in words how pricing a stock is similar to pricing a bond Assume the stock is held forever AND pays a dividend of D per yearWhat kind of bond is this like Hint You may write down the mathematics if this helps4Explain in words how pricing a stock is similar to pricing a bond Assume the stock is held forever pays a dividend of D per year AND this dividend grows at g per cent per yearWhat kind of bond is this like Hint You may write dow

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