Question

Q8

9.If your stock paying annual dividends will pay a dividend
**D _{1} at t=1 of $1.57** and have a growth
rate of 11% between t=1 and t=2, and with a constant
growth rate of 5% thereafter into the future, what should be the
value of the stock at t=0 if the expected rate of return for the
stock is 7%?

10. You have $100,000 in a saving account earning 9.8 percent per year. You now want to make 4 equal yearly withdrawals depleting the saving account. How much are your withdrawals? Answer to the nearest cent, xxx.xx and enter without the dollar sign.

Answer #1

If your stock paying annual dividends will pay a dividend D1 at
t=1 of $1.93 and have a growth rate of 10% between t=1
and t=2, and with a constant growth rate of 4% thereafter into the
future, what should be the value of the stock at t=0 if the
expected rate of return for the stock is 8%? Notice that
in this problem, expected dividends are given at t = 1, not t = 0!
Answer to the nearest cent as...

25.If your stock paying annual dividends will pay a dividend
D1 at t=1 of $1.06 and have a growth
rate of 11% between t=1 and t=2, and with a constant
growth rate of 5% thereafter into the future, what should be the
value of the stock at t=0 if the expected rate of return for the
stock is 7%? Notice that in this problem, expected
dividends are given at t = 1, not t = 0! Answer to the
nearest cent...

if your stock paying annual dividends will pay a dividend d1 at
t=1 of 1.47 and have a growth rate of 11% between t=1 and t=2 and
with a constant growth rate of 4% thereafter into the future, what
should be the value of the stock at t=0 if the expected rate of
return for the stock is 7%?

You have $100,000 in a saving account earning 7.4 percent per
year. You now want to make 6 equal yearly withdrawals depleting the
saving account. How much are your withdrawals?
Answer to the nearest cent, xxx.xx and enter without the dollar
sign.

F.E
9.If your stock pays a dividend D0 = $0.75 at
t = 0.and will experience a constant growth of 6.4 percent
forever into the future, what should be the price of the stock if
the required return for such stocks is 10.5 percent? Note:
The dividend shown above is at t = 0, not
t=1. Answer to the nearest cent,
xxx.xx and enter without the dollar sign.
10.What is the price of a 13-year bond paying 9.5% annual
coupons with...

1. If you deposit $13,552 dollars into a savings account, what
interest would you need to be earning to have $19,587 dollars in
the same account 6 years later? Answer as a percent and to the
nearest hundredth of a percent as in xx.xx % and enter without the
percent sign.
2. Stock W has a beta of 1.4, Stock X has a beta of 0.59, Stock
Y has a beta of 0.4,and stock Z has a beta of -0.04....

A stock is expected to pay a dividend of $2.71 at the end of the
year. The required rate of return is 9.2% and the expected constant
growth rate is g= 4%. What is the stock's current price? (Answer in
$s to the nearest cent, xx.xx, with no $ sign or commas
needed.)

A stock pays dividends of $1.00 at t =
1. (D1 is provided here, not
D0) It is growing at 25%
between t =1 and t = 2, after which the growth rate drops to 12%,
and will continue at that rate into the future. If the discount
rate for this stock is 14%, what should be the value of the stock
at t = 0? Hint: Make a diagram indicating ranges of the growth
rates and the resulting dividends.
$53.04...

Q4
9.You are borrowing $200,000 for an amortized loan with terms
that include annual payments,9 year loan, and interest rate of 4.5
per year. How much of the first year's payment would be applied
toward reducing the principal? Answer to the nearest cent xxx.xx,
and do not enter the dollar sign.
10.What is the effective or equivalent annual rate if the bank
pays 7 % nominal interest rate but compounds the money daily (use
365 days in a year)? Answer...

MT
5) If someone will pay you 100 dollars in 19 years and interest
rate is estimated to be 7.2% over those years, what is the
estimated value of that cash flow? Provide answer to the nearest
cent, xxx.xx, and enter without a dollar sign.
6)A firm's stock has 50% chance of a 8% rate of return and
a 50% chance of a 27% rate of return. What is the
standard deviation of return for this stock?
Answer as a percent...

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