{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

FIN351_Chapter7_Ex_7-43_Solution

# FIN351_Chapter7_Ex_7-43_Solution - 00 10 1000 738 34 \$ 738...

This preview shows pages 1–3. Sign up to view the full content.

1 Exercise 7-43 1. 2. P 4 = DIV 5 /(r - g) = [DIV 4 × (1 + g)] / (r - g) = (\$2.0736 × 1.05)/(0.10 – 0.05) = \$43.5456 0736 . 2 \$ 20 . 1 00 . 1 DIV 728 . 1 \$ 20 . 1 00 . 1 DIV 44 . 1 \$ 20 . 1 00 . 1 DIV 20 . 1 \$ 20 . 1 00 . 1 DIV 4 4 3 3 2 2 1 = × = = × = = × = = × =

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

View Full Document
2 Exercise 7-43 3. 4.DIV 1 /P 0 = \$1.20/\$34.738 = 0.0345 = 3.45% 738 . 34 \$ ) 10 . 1 ( 5456 . 43 \$ 0736 . 2 \$ ) 10 . 1 ( 728 . 1 \$ ) 10 . 1 ( 44 . 1 \$ 10 . 1 20 . 1 \$ P 4 3 2 0 = + + + + =
3 Exercise 7-43 5.Next year the price will be: 6.
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: % 00 . 10 1000 . 738 . 34 \$ ) 738 . 34 \$ 012 . 37 (\$ 20 . 1 \$ P Gain Capital DIV r 1 = =-+ = + = Back to Chapter 7 012 . 37 \$ ) 10 . 1 ( 5456 . 43 \$ 0736 . 2 \$ ) 10 . 1 ( 728 . 1 \$ 10 . 1 44 . 1 \$ P 3 2 1 = + + + =...
View Full Document

{[ snackBarMessage ]}

### Page1 / 3

FIN351_Chapter7_Ex_7-43_Solution - 00 10 1000 738 34 \$ 738...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online