shares

1. Company pays fixed yearly dividend in amount of 10 PLN per share. What is the value of this share on 01.01 2015, if after 6 years it will be sold for 700 PLN and expected return rate is 5% pa? Result: 573.11 PLN

2. The amount of dividend paid last time is 12 PLN per share. What is the value of share in zero-growth dividend model and in Gordon model (rate of growth of 6% pa.) if expected return rate on market is 10% pa. Should an investor buy this share if its current marketprice is 15 PLN. Results: P(0GM) = 120 PLN / P(GGM) = 318 PLN

3. The price of companys share increased from 98 PLN to 100 PLN in 4 years. During thatperiod company paid dividend in amount: 4 PLN, 6 PLN, X, 2 PLN. Find X which is dividend paid in third year, if expected return rate from shares is 6%. Result: X = 9.64 PLN