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The equity premium and the value of stocks Now look carefully at equation (14.15). Set i1t = 11t+n = 0.03 for all n. Set x
The equity premium and the value of stocks Now look carefully at equation (14.15). Set i1t = 11t+n = 0.03 for all n. Set x = 0.04. Complete the following table by computing the coefficients on $D$75 and $D$+ 10- (Round your responses to two decimal places.) Expected Dividend Coefficient $D+5 $D7 t + 10 $D+1 $Q+ = $D$+2 (1+144 + ) (1++ )(1+it+y + x) + + ... + $D+n $QE+ (1+ine + x) (1+it+n-1 + x) (1+ine + x) (1+it+n4 + x) + + The equity premium and the value of stocks Now look carefully at equation (14.15). Set i1t = 11t+n = 0.03 for all n. Set x = 0.04. Complete the following table by computing the coefficients on $D$75 and $D$+ 10- (Round your responses to two decimal places.) Expected Dividend Coefficient $D+5 $D7 t + 10 $D+1 $Q+ = $D$+2 (1+144 + ) (1++ )(1+it+y + x) + + ... + $D+n $QE+ (1+ine + x) (1+it+n-1 + x) (1+ine + x) (1+it+n4 + x) + +
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