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5. Baxxoud Corp. is expected to earn $2.00, $2.20, and $2.40 per share in each of the next 3 years. At the end of the
5. Baxxoud Corp. is expected to earn $2.00, $2.20, and $2.40 per share in each of the next 3 years. At the end of the third year, the stock is expected to sell at a current yield of 3%. If the corp. dividends payout ratio of 25%. If an investor demands a 15% return for investing in Baxxaud's Corp. how much should the investor be willing to pay for the shares today. a $12.88 b. $14.40 c. $16.67 16. Proxy document document giving one person the non-authority to act for another. a TRUE BFALSE 40. Suppose you know that a company just paid a dividend of$1.75 per share on its stock and that the dividend will continue to grow at a rate of 8 percent per year. If the required return on this stock is 10 percent, what is the current share price? a 509.9 b.96.90 c.97.89 d.94.50 27. Mohammed must pay lump sum of $8000 in 5 years. What amount must be deposited today at 8.2% compounded annually will make the amount of $8000. a. 11,786.32 b. 112.897.22 c.6,921.98 d.5.921.98 35. Dr. Fadel is valued employee at the university. The university plans to offer him a $100,000 bonus, payable when he retires in 20 years. If the university deposits $200 a month in a sinking fund, what interest rate must it earn, with monthly compounding, to guarantee that the fund will be worth $100,000 in 20 years a.6.66% b.7.78% C.8.99% d.5.98% 30. you have a kid his age is 5 years old. You as parents would like to have $75000 after 15 years in this kid account. If this account pays 5.6% paid twice a year. How much as parents would you be able to deposit every 6 months. a.98,9876 b.1,798,30 c. 1,700.87 d. 1,628.19
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