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Compute Ke and Kn: a. D1 = $5.00, P0 = $70, g = 8%, F = $7.00 b. D1 = $.22, P0 = $28, g
Compute Ke and Kn:
a. D1 = $5.00, P0 = $70, g = 8%, F = $7.00
b. D1 = $.22, P0 = $28, g = 7%, F = $2.50.
c. E1 (earnings at the end of period one) = $7, payout ratio equals 40 percent, P0 = $30, g = 6.0%, F = $2.20.
d. D0 (dividend at the beginning of the first period) = $6, growth rate for dividends and earnings (g) = 7%, P0 = $60, F = $3
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