2.Consider a stock with a non-constant growth of dividends. The dividendpayment will grow at 10% at the end of third year. After this high growth, dividend paymentsare expected to grow at a constant rate of 4%. The required rate of return on investment in thisstock is 13%10%.1010%4%.477.47. 4/,....D= $1.00D= 1.10-1,21 B-1.30 D-15s2 Ds DeBased on this financial information, compute the value of this stock.

Answered: Image /qna-images/answer/4955268f-5b7d-42cd-b1c8-cc61ec8553fc.jpg

Answered: 2. Consider a stock with a non-constant…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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A1 You hold a short position in an asset with a price of $50 and write a 6-month put (exercise price = $50) for $4. Given that the effective annual interest rate is 5% (annually compounded), what is your profit if the price of underlying asset at expiration of the option is $48?
A perpetuity pays 1 at time t=2,2 at time t=3,..,n at time t=(n+1).After t=(n+1),the annual payments remain constant at n.The effective annual interest rate is 8.5%.The price of this perpetuity is £90.48.Calculate n.
F2.
Hw.103.
8. Amanda invests some money for her retirement. The account pays 9%/a compounded quarterly. How long will it take for her investment to quadruple? C. 4.0 years D. 6.8 years A. 16.1 years B. 15.6 years
James has an investment worth $175,609.50. The investment will make a special payment of X to James in 1 month from today and the investment also will make regular, fixed monthly payments of $1,440.00 to James forever. The expected return for the investment is 1.23 percent per month and the first regular, fixed monthly payment of $1,440.00 will be made to James in one month from today. What is X, the amount of the special payment that will be made to James in 1 month? An amount less than $58,600.00 or an anmount greater than $179,600.00 An amount equal to or greater than $58,600.00 but less than $88,950.00 An amount equal to or greater than $88,950.00 but less than $146,400.00 An amount equal to or greater than $146,400.00 but less than $176,000.00 O An amount equal to or greater than $176,000.00 but less than $179,600.00 Com SHEMA
13. INVESTMENTS Determine the amount of an investment if $1000 is invested at an interest rate of 8% compounded quarterly for 2 years. A $1160.00 B $1171.66 C $1040.40 D $1166.40 13.
4. Suppose that you would like to set up a scholarship. The fund that you set up will grow with an interest rate of 5% per year, compounded annually. Each year, you plan to pay out $20, 000 to a deserving student. you plan for this scholarship to be given out for a total of 5 do If years, how much money you need to initially invest?
. For example, if Eloisa invests in an I-bond which compounds twice a year with APR 8%, 8% then each 6 months, the money in the account will be assessed 4% interest. This 2 is 4% semi-annual growth. Thus the growth factor is 1.04. (a) Fill in the table for how much money is in Eloisa's I-bond at each time after initial investment of $200, assuming the interest rate does not change. 1.5 years 2 years t years t amount 0 months 6 months $200 = 1 year (b) As a percent, how much larger is Eloisa's account after one year compared to her original investment? What was the percent change?
An investment opportunity promises to pay off an amount of P1,000,000 seven years from now if one invests P400,000 today. If the interest is compounded in a semi-annual basis, what is the assumed interest rate for the investment?
am. 218.
1. Find the annual percentage yield for an investment that earns interest at a rate of 6% per year, compounded daily.

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