CH7 - 6 Dividend Yield =.11/2 =.055 or 5.5 $65.055 = $3.58...

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1. Current Price = 2.35 * 1.045 / (.11-.045) = $37.78 Price in 3 years = 2.35 * 1.045^4 / (.11-.045) = $43.11 Price in 15 years = 2.35 * 1.045^16 / (.11-.045) = $73.12 2. R = 2.45/48.50 + 5.5 = .1055 or 10.55% 3. Dividend yield = 2.45/48.50 = .0505 or 5.05% Capital Gains Yield = .0055 or 5.5% 4. P = 3.85 / (.12-.0475) = $53.10 5. R = .058 + .043 = .1010 or 10.10%
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Unformatted text preview: 6. Dividend Yield = .11/2 =.055 or 5.5% $65 * .055 = $3.58 dps D0 = $3.58/1.055 = $3.39dps 7. Present Value of D Years Interest Rate PMT Future Value $ 71.95 8 year 9% $13.00 8. R = 4.50/79.85 = .0564 or 5.64% 13. P = 12 / (.13 - .05) = $150 Present Value of P Years Interest Rate PMT Future Value $ 49.93 9 year 13% $0 $150.00...
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This note was uploaded on 01/23/2012 for the course MGT 111 taught by Professor Unknown during the Spring '11 term at Washington State University .

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