Question
Compute K e and K n under the following circumstances: a. D 1 = $5.80, P 0 = $104, g = 5%, F = $4.00.
Compute Ke and Kn under the following circumstances:
a. D1 = $5.80, P0 = $104, g = 5%, F = $4.00. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
b. D1 = $0.22, P0 = $33, g = 4%, F = $1.50. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
c. E1 (earnings at the end of period one) = $5, payout ratio equals 40 percent, P0 = $41, g = 6.7%, F = $3.60. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
d. D0 (dividend at the beginning of the first period) = $5, growth rate for dividends and earnings (g) = 7%, P0 = $67, F = $2
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