RepetitoriumIII

RepetitoriumIII - rate is constant and equals 1,25%. What...

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Repetitorium – TEST 3 1. Assume Y/N=4 and K/N=8 at time t. Calculate K/N at time t+1 if s=0,3 and δ=0,1! 2. Assume Y/N=5 and K/N=6 at time t. Calculate K/N at time t+1 if s=0,4 and δ=0,2! 3. Assume Y/N=2 and K/N=3 at time t. Calculate K/N at time t+1 if s=0,4 and δ=0,15! 4. Assume you 100.000$. Calculate for each three cases how much this amount will be worth after three years! 5. Assume you are starting a business which will yield expected profits in the next two years. Current profit is 15.000$ and profit in two years is 14.000$. Nominal interest rate is constant and equals 2,5%. What is the expected present value of future profits? 6. Assume you are starting a business which will yield expected profits in the next two years. Current profit is 10.000$ and profit in three years is 7.000$. Nominal interest
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Unformatted text preview: rate is constant and equals 1,25%. What is the expected present value of future profits? 7. Stock promises a dividend of 5.000$ after a year and 6.000$ after two years. Interest rate is constant and equals to 4%. Calculate the current price of stock! 8. Stock promises a dividend of 1.500$ after a year and 3.000$ after two years. Interest rate is constant and equals to 7%. Calculate the current price of stock! 9. Real interest rate is 3%. Expected price level at the end of next year is 15% higher than current price level. What is the discount factor? 10. Real interest rate is 2%. Expected price level at the end of next year is 5% higher than current price level. What is the discount factor? i t i t+1 i t+2 i t+3 Case 1 5% 8% Case 2 10% 0% 5% 0% Case 3 0% 0% 7% 6%...
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This note was uploaded on 10/20/2011 for the course DD 3 taught by Professor Batman during the Spring '11 term at Yale.

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