Extra Problems Solution

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

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern