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

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