100038050_HW5 - current share price? P0 = Div/(R -g) =...

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Problem 13 dividend of 3 just paid, g is expected to be 5%, investors require 16% return for the first 3 years, 14% next three y 11% thereafter; current share price? P0 = Div1(1+g)[(1 - ((1+g)/(1+R))^T)/(R - g)] + Div1 = $53.99 Problem 14 no dividends over the next 9 years, 8 per share in 10 years, 6% increase thereafter, return on the stock is 15%,
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Unformatted text preview: current share price? P0 = Div/(R -g) = $25.27 Problem 17 g is 25% the next three years and 7% thereafter, return is 13%, dividend paid 2.8, what is the share price? P0 = $80.70 years,...
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This note was uploaded on 04/24/2010 for the course BUS 306 taught by Professor Lomev during the Fall '09 term at American University in Bulgaria.

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100038050_HW5 - current share price? P0 = Div/(R -g) =...

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