rate of 5% per yea stock for 10 years. The purchaser ust rate of 15% for valuation purposes. dividendhr anticipates a stock price of 50.00 (excluding for the a (a) If the purchaser dividend) when he sells he put on the stock now? he sells 10 years from now, what value will (b) Suppose the purchaser is willing to pay 20.00 now 10 years from now? stock. What stock price is implied 9.1.2 The stock of XYZ Corporation is current expected to be 2 with 12%. What value ofr is implied? ly valued at 25 per share. annual dividend has just been paid and the next dividend is each subsequent dividend 1+r times the previous one. The valuation is based on an annual interest rate o Suppose the dividends are payable quarterly with the next one due in exactly one quarter. For the next four quarters the dividend will be 50 each quarter. Every year (after every 4 quarters) the actor of 1+s. If the stock is now valued dividend is increased by a f at 25 based )12, what value of s is implied? SECTION 9.2 9.2.1 An investor sells short 500 shares of ABC Corporation on June 1, at a time when the price per share is S120. The position is closed out 3 months later, August 31, when the price per share is $100. A dividend of $4 per share was paid July 31, one month before the short position is closed out. rate of 5% per yea stock for 10 years. The purchaser ust rate of 15% for valuation purposes. dividendhr anticipates a stock price of 50.00 (excluding for the a (a) If the purchaser dividend) when he sells he put on the stock now? he sells 10 years from now, what value will (b) Suppose the purchaser is willing to pay 20.00 now 10 years from now? stock. What stock price is implied 9.1.2 The stock of XYZ Corporation is current expected to be 2 with 12%. What value ofr is implied? ly valued at 25 per share. annual dividend has just been paid and the next dividend is each subsequent dividend 1+r times the previous one. The valuation is based on an annual interest rate o Suppose the dividends are payable quarterly with the next one due in exactly one quarter. For the next four quarters the dividend will be 50 each quarter. Every year (after every 4 quarters) the actor of 1+s. If the stock is now valued dividend is increased by a f at 25 based )12, what value of s is implied? SECTION 9.2 9.2.1 An investor sells short 500 shares of ABC Corporation on June 1, at a time when the price per share is S120. The position is closed out 3 months later, August 31, when the price per share is $100. A dividend of $4 per share was paid July 31, one month before the short position is closed out