eoc_chapter_07 - Chapter 7 Problems 1-25 Input boxes in tan...

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Chapter 7 Problems 1-25 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
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Chapter 7 Question 1 Input area: Dividend paid $2.00 Dividend growth rate 5% Required return 12% # of years 0 Output area: Price = $30.00
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Chapter 7 Question 2 Input area: Dividend paid $2.00 Dividend growth rate 7% Required return $45.00 Output area: Required return = 11.44%
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Chapter 7 Question 3 Input area: Dividend paid $2.00 Dividend growth rate 7% Required return $45.00 Output area: Dividend yield = Dividend / Price = 4.44% Capital gains yield = growth rate = 7.00%
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Chapter 7 Question 4 Input area: Dividend paid $5.00 Dividend growth rate 5% Required return 12% Output area: Price = $71.43
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Chapter 7 Question 5 Input area: Dividend growth rate 6.0% Dividend yield 5.4% Output area: Required return = 11.40%
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Chapter 7 Question 6 Input area: Stock price $60.00 Required return 15.0% Output area: Current dividend = $4.19
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Chapter 7 Question 7 Input area: Current dividend $10.00 Required return 11.0% Years until dividend ceases 7 Output area: Share price = $47.12
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Chapter 7 Question 8 Input area: Current dividend $6.00 Share price 80.86 Output area: Required return = 7.42%
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Chapter 7 Question 9 Input area: Shares outstanding 200,000 Share price $65.00 Number of seats 4 Output area: Straight voting shares required = 100,001 Dollars required in straight voting = $6,500,065.00 Cumulative voting shares required = 40,001 Dollars required in cumulative voting = $2,600,065.00
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Chapter 7 Question 10 Input area: Stock price $80.00 Dividend paid $4.20 Required return 13% Output area: g = 7.75%
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