2 Problem 7-8 Dividend Discount Model (LO2)
60
points
Rework Table 24 for horizon years 1, 2, 3, and 10, assuming that investors expect the dividend and the stock price to increase at only
6% a year and that each investor requires the same 12% expected return. The company will pay a dividend of $5.40 at the end of the
first year. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Spoed
Horizon
(years)
1
PV
(Dividends)
PV (Terminal
Price)
Value per
Share
Boo
Punt
2
3
Deterences
10

According to the map, which continent has the most countries with a low gdp level? which two countries have the highest gdp level?

Suppose that xtel currently is selling at $40 per share. you buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. the rate on the margin loan is 8%. a. what is the percentage increase in the net worth of your brokerage account if the price of xtel immediately changes to (a) $44; (b) $40; (c) $36? (leave no cells blank - be certain to enter "0" wherever required. negative values should be indicated by a minus sign. round your answers to 2 decimal places.) b. if the maintenance margin is 25%, how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.) c. how would your answer to requirement 2 would change if you had financed the initial purchase with only $10,000 of your own money? (round your answer to 2 decimal places.) d. what is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if xtel is selling after one year at (a) $44; (b) $40; (c) $36? (negative values should be indicated by a minus sign. round your answers to 2 decimal places.) e. continue to assume that a year has passed. how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.)

How is challah bread made? if i have to dabble the recipe?