Do not open until instructed to do so!Principles of Finance- Fall 2010 Exam 3 – Security Analysis and Valuation PRINT your name__________________________________________SIGN your name ___________________________________________Print and sign your name on both the scantron and the exam right now. Signing your name reaffirms your commitment to the University Honor Code which, by the way, is “On my honor, as a student, I have neither given nor received unauthorized aid on this academic work.” We will collect this top sheet when you turn in your exam. Your version number is 2. Your answer sheet number is 1. Please enter these on the SCANTRON now.Please mark each answer on the scantron in pencil. Use the space by the problem for calculations; no other paper. Do not detach pages. For both the problems and concept questions, there is one BEST answer; please choose that one. There are multiple versions of the exam, but all are equally easy. Good luck!(29+=NrFVPV11PV of Perpetuity = rPMT1100xEEPP=Ann. due adj. = (1 + r) (29+-=NArrrPMTPV111grDPo-=1E(ri) = Rf+ [E(Rm) - Rf]βIgPDRO+=1PPPPDR=1D= 0D* (1+g) TYYMUNITAX-=1NrPVFV)1(+=)1(SEMIYTMEAY+=2 -111-=NPVFVR
20 Multiple Choice worth 4 points each = 80 pointsVersion 2-1Use this info for the next 2 problems.Suppose you saw this stock information in the Wall Street Journal:52 wk. Yld VolHi Lo Stock ________ Sym Div % P/E 100s 60 36 Tiffany & Co. TIF ??? 1.8 23 20,000 1. If the dividend is constantly growing at 5%, what is the value of the stock today if the required rate of return is 10%?Close Chg56 - .25$24.54
