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Unformatted text preview: 5. My stock has recurring yearly dividend payments of $1.00 a share. At a 5% interest rate, what is the value of the stock? 6. Suppose I have a stock with a differential growth model: Draw the cash flow diagram of the differential growth model stock.\ 7. Estimate the growth rate of corporation X with the following data: Plowback ratio of 0.7, Return on Retained Earnings of 10%. 8. Find the NPVGO of a firm with a value of $50, Net Income of 5 million, 5 million shares outstanding, discount rate of 5%. T 1 2 1 1 Div (1 ) 1 (1 ) (1 ) T T T R g g C P R g R R + - + =-+ -+ +...
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- Winter '10