BUS_320_Chapter_9_Assignment_Solutions

BUS_320_Chapter_9_Assignment_Solutions - \$34.09 \$1.89 P 2 =...

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BUS 320 Chapter 9 Assignment Solutions D 1 \$0.60 1) P 0 = -------- = ----------- = \$12.00 K S – g .15 - .10 D 1 D 1 2) P 0 = -------- ; so k S = -------- + g K S – g P 0 1.00)(1.06) K S = ---------------- + .06 = .113 = 11.3% 20.00 (1.06)(1.06) 1.124 P 1 = ---------------- = ----------- = \$21.21 .113 - .06 .053 0 1 2 3 3) +----------------+-----------------+-----------------+ D 0 = \$1.25 D 1 = \$1.50 D 2 = \$1.80 D 3 = \$1.89 ¦ PV = \$1.36 -------------------- P 2 = \$37.80 \$39.60 ¦ PV = \$32.73 ----------------------------------------- P 0 =

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Unformatted text preview: \$34.09 \$1.89 P 2 = ----------- = \$37.80 .10 - .05 \$5.00 4) \$60.00 = ----------K P K P = .0833 = 8.33% \$1.90 5) 1) D 1 = (\$2.00)(.95) = \$1.90 so P = -------------- = \$9.50 .15 – (-.05) \$2.00 2) D 1 = (\$2.00)(1.00) = \$2.00 so P = ------------ = \$13.33 .15 – .00 \$2.10 3) D 1 = (\$2.00)(1.05) = \$2.10 so P = ------------ = \$21.00 .15 – .05 \$2.20 4) D 1 = (\$2.00)(1.10) = \$2.20 so P = ------------ = \$44.00 .15 – .10...
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This note was uploaded on 01/11/2011 for the course BUS 320 taught by Professor Sloan during the Winter '08 term at N.C. State.

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BUS_320_Chapter_9_Assignment_Solutions - \$34.09 \$1.89 P 2 =...

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