11 Compute Ke and Kn under the following circumstances: a. D1 = $4.60, P0 = $92, g...

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Finance

11
Compute Ke and Kn under the following circumstances:
a. D1 = $4.60, P0 = $92, g = 6%, F = $5.00. (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)
b. D1 = $.26, P0 = $25, g = 6%, F = $2.50. (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)
c. E1 (earnings at the end of period one) = $5, payout ratioequals 40 percent, P0 = $29, g = 8.5%, F = $2.80. (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)
d. D0 (dividend at the beginning of the first period) = $4,growth rate for dividends and earnings (g) = 7%, P0 = $55, F = $5.(Do not round intermediate calculations. Round your answers to 2decimal places.)

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3.6 Ratings (361 Votes)

a D1 460 P0 92 g 6 F 500 Cost of retained earnings Ke D1 P0 g 460 92 6 005 6 5 6 1100 Cost of new stock Kn D1 P0 F g 460 92 5 6 460 87 6 0052873 6 52873 6 112873 1129 rounded to two decimal places b D1 026 P0 25 g 6 F See Answer

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11Compute Ke and Kn under the following circumstances:a. D1 = $4.60, P0 = $92, g = 6%, F = $5.00. (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)b. D1 = $.26, P0 = $25, g = 6%, F = $2.50. (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)c. E1 (earnings at the end of period one) = $5, payout ratioequals 40 percent, P0 = $29, g = 8.5%, F = $2.80. (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)d. D0 (dividend at the beginning of the first period) = $4,growth rate for dividends and earnings (g) = 7%, P0 = $55, F = $5.(Do not round intermediate calculations. Round your answers to 2decimal places.)