Extra Problems Solution

Extra Problems Solution - $0.00 9 13.00% $150.00 $49.93...

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Chapter 7 Problem 6 P0 $65.00  R = dividend yield capital gains yield = growth 11.00% = 5.50% + 5.50% DY = 5.50% = D1 / P0 D1 = 5.50% * $65.00  = $3.58  = D0 (1+g) D0 = D1 / (1+g) = $3.58  /  1.0550  = $3.39 Problem 7 PMT N I/Y FV CPT PV $13.00  8 9.00% $0.00  $71.95  Problem 13 P9 = D10 / ( R - = $12.00  / ( 0.13 - =  $150.00  PMT N I/Y FV CPT PV
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Unformatted text preview: $0.00 9 13.00% $150.00 $49.93 Problem 16 R 13.00% Year 1 2 3 4 g 30.00% 30.00% 30.00% 6.00% D $2.75 $3.58 $4.65 $6.04 $6.40 PV $3.16 $3.64 $4.19 P3 = D4/(R-g) PV of P3 P0 = $74.40 g ) 0.05 ) = $91.49 = $63.41...
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This note was uploaded on 04/05/2011 for the course FIN 350 taught by Professor Debruinne during the Winter '11 term at Grand Valley State University.

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Extra Problems Solution - $0.00 9 13.00% $150.00 $49.93...

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