Exam 2 Spring 2008 Final Version

Exam 2 Spring 2008 Final Version - Exam 2 Spring 2008 Dr....

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Exam 2 Spring 2008 Dr. Jones BUS 422  NAME___________________________________________ ANSWER SHEET Place all answers only on these 2 pages .  Turn in only the Answer Sheet;  show enough of your work beside and below each blank to indicate how you derived at your   answer.  NOTE: you don’t have to be exact in doing this, such as showing formulas in exact   correct format.  Simply say something like I used the constant growth version of the DDM to   calculate intrinsic value, I used CAPM to calculate k, I used the following formula to calculate g (b   X r), I discounted the dividends at 10% and added them up, etc.  (2) 1. __________________________ (3)  2. __________________________ (4)  3. __________________________ (4)  4. __________________________ (4)  5. __________________________ (4)  6. __________________________ (4)  7. __________________________  (4)  8. _________________________
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 (4)  9. _________________________ (4)  10. ________________________ (4)  11. ________________________ 12.       (2)____________________            (2)____________________            (2)_____________________            (2)_____________________ 3 points each 13. a) ______________________      b) _______________________       c. ______________________   d). ______________________    e) ______________________    f)  ______________________               g) ______________________              h) ______________________          i) _______________________         j) _______________________    
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      k) _______________________          l) _______________________        m) ________________________     n)   ________________________     o)  _________________________     p) __________________________    q) ___________________________       
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NOTE: Set calculator to 4 decimal places, or 3 if this is what is already set;  ROUND ANSWERS TO 2 DECIMAL PLACES—all answers graded only on  this basis Examples: $1.7267 is to be shown as $1.73; 6.123% is to be shown as 6.12% (2) ________________ 1.  The preferred stock of SAP Corp has a par value of $100 and pays a  $7.50 annual dividend.  You require a 7% rate of return for this stock.  You expect the price to  be at $115 in one year.  What is the maximum price  you would pay for this preferred stock 
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This note was uploaded on 11/17/2008 for the course BUS 422 taught by Professor Jones during the Spring '08 term at N.C. State.

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Exam 2 Spring 2008 Final Version - Exam 2 Spring 2008 Dr....

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