6.2 - $52.23 YES WILL PAY $49.00 AS RETURN WILL BE GREATER...

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    CP RAIL WOULD YOU BUY THE STOCK?
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CASH FLOWS TODAY’S PRICE = $49.00 TARGET PRICE IN ONE YR = $60.00 SAME FOR TWO YEARS DIVIDEND/YR = $0.60
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120 DAY CHART
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120 WEEK - CHART
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CP – ONE YEAR HOLD PV OF DIVIDENDS YEAR DIVIDEND 0.15 PV 2006 $0.06 0.8696 $0.05 2007 2008 2009 $0.05 PV OF STOCK SALE 2006 $60.00 0.8696 $52.18
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Unformatted text preview: $52.23 YES WILL PAY $49.00 AS RETURN WILL BE GREATER THAN 15% CP - 2 YEAR HOLD PV OF DIVIDENDS YEAR DIVIDEND 0.15 PV 2006 $0.60 0.8696 $0.52 2007 $0.60 0.7561 $0.45 2008 2009 $0.98 PV OF STOCK SALE 2007 $60.00 0.7561 $45.37 $46.34 NO WILLNOT PAY $49.00 AS RETURN WILL BE GREATER THAN 15%...
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This note was uploaded on 11/13/2011 for the course CIVE 2*** taught by Professor - during the Spring '11 term at Carleton CA.

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6.2 - $52.23 YES WILL PAY $49.00 AS RETURN WILL BE GREATER...

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