13.3.2 - $4.96 + $27.95 = $32.91 therefore would buy @...

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TPL STOCK VALUATION  QUESTION 1 PV OF DIVIDEND  (n=4yrs, i=8%) $1.50 X 3.312 =  $4.96  OF STOCK SALE  (n=5yrs, i=10%) PV OF STOCK SALE  (n=5yrs, i=10%) $45.00 X 0.621 =  $27.95 VALUE OF STOCK SALE
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Unformatted text preview: $4.96 + $27.95 = $32.91 therefore would buy @ $30.00 per share QUESTION#2 >10% AS YOU WOULD SELL IT FOR $55/SHARE vs $45/SHARE IN THE QUESTIONS 1...
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