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If the interest rate is 5.25%, what is the PV of the cash flows? Year CF 1 1000 2-7 3000 8-10 6000 11 8,000 12-15
If the interest rate is 5.25%, what is the PV of the cash flows?
Year | CF |
1 | 1000 |
2-7 | 3000 |
8-10 | 6000 |
11 | 8,000 |
12-15 | 15000 |
Answer: ____________________
Jerry is considering purchasing shares Brown Industries common stock. Brown paid a $3.00 dividend 5 years ago. Today, it paid a $4.21 dividend. If the market required rate of return on Brown common stock is 17%, what is a fair price for a share of Brown?
Calculate the rate at which the dividend grew over 5 years. This is a TVM application.
Round your growth rate to the nearest full percent.
Round 2 decimal places.
Answer: _________________________
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