Question
Compute K e and K n under the following circumstances: a. D 1 = $9.80, P 0 = $98, g = 5%, F = $8.00.
| Compute Ke and Kn under the following circumstances: |
| a. | D1 = $9.80, P0 = $98, g = 5%, F = $8.00. (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
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| Ke | % |
| Kn | % |
| b. | D1 = $.48, P0 = $27, g = 9%, F = $2.50. (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
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| Ke | % |
| Kn | % |
| c. | E1 (earnings at the end of period one) = $8, payout ratio equals 25 percent, P0 = $35, g = 2.8%, F = $1.70. (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
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| Ke | % |
| Kn | % |
| d. | D0 (dividend at the beginning of the first period) = $6, growth rate for dividends and earnings (g) = 4%, P0 = $61, F = $6. (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
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| Ke | % |
| Kn | % |
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
