ANSWER SHEET Exam 2 Spring 2008

ANSWER SHEET Exam 2 Spring 2008 - Exam 2 Spring 2008 Dr....

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Exam 2 Spring 2008 Dr. Jones BUS 422  NAME___Chris bishop_ 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. $114.49       (115+7.5 / X= 1.07) (3) 2. $13.15  = $3/(1.15^3) = 1.9725 ; 1.9725 / X = 0.15 ; X= 13.15 (find PV of that dividend to  solve the equation. ) (4)  3. $27.60   equals the present value of $27.50 + 3.40 = $30.9 , to find pv = 30.9 /1.12
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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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ANSWER SHEET Exam 2 Spring 2008 - Exam 2 Spring 2008 Dr....

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