Answer:
D0 = $1.22
Explanation:
Data provided in the question:
Required rate of return, r = 11.50% = 0.115
Selling price of the stock = $29.00
Expected growth rate = 7.00% = 0.07
Now,
Stock price =
here,
D1 is the current dividend
thus,
$29.00 =
or
D1 = $1.305
also,
D0 =
or
D0 =
or
D0 = 1.219 ≈ $1.22
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Compromising
because he thought of Drake instead of making him go bowling
Answer:
$ 67,196
$132482
$88,727
$131,761
Explanation:
The formula for calculating future value:
FV = P (1 + r/m)^mn
FV = Future value
P = Present value
R = interest rate
N = number of years
m =number of compounding
$50,000 x ( 1 + 0.06/2)^10 = $67,196
$60,000 x ( 1 + 0.08/4)^40 = $132,482
$40,000 x (1 + 0.1/12)^96 = $88,727
$80,000 x ( 1 + 0.05 /12) ^120 = $131,761