A private individual buys shares in a Norwegian limited liability company on 1 January this year for NOK 1,000,000. annual share dividends of NOK 100,000 are received from the investment, first on 2 January year 2, and then on 2 January each year. The dividend that the ash company records as short-term debt in its accounts as of 31 December in year 4, and which is paid on 2 January in year 5, shall accrue to the new shareholder the shares rise in value each year and have an annual value increase (excluding dividends) of 5% on the basis of this information you should salvage the following a) what is the sale value of the shares as of 1 January this year 5 b) what is the investment's internal rate of return including increase in value and dividends received during the private person's ownership period c) What is the present value of the investment including increase in value and dividends received? Take the necessary assumptions about any variables that are missing to calculate the present value, and explain disregard the tax on stock dividends and gains in the statement the shares rise in value each year and have an annual value increase (excluding dividends) of 5% on the basis of this information you should salvage the following a) what is the sale value of the shares as of 1 January this year 5 b) what is the investment's internal rate of return including increase in value and dividends received during the private person's ownership period c) What is the present value of the investment including increase in value and dividends received? Take the necessary assumptions about any variables that are missing to calculate the present value, and explain disregard the tax on stock dividends and gains in the statement

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A private individual buys shares in a Norwegian limited liability company on 1 January this year for NOK 1,000,000.

annual share dividends of NOK 100,000 are received from the investment, first on 2 January year 2, and then on 2 January each year. The dividend that the ash company records as short-term debt in its accounts as of 31 December in year 4, and which is paid on 2 January in year 5, shall accrue to the new shareholder

the shares rise in value each year and have an annual value increase (excluding dividends) of 5% on the basis of this information you should salvage the following a) what is the sale value of the shares as of 1 January this year 5 b) what is the investment's internal rate of return including increase in value and dividends received during the private person's ownership period c) What is the present value of the investment including increase in value and dividends received? Take the necessary assumptions about any variables that are missing to calculate the present value, and explain disregard the tax on stock dividends and gains in the statement

the shares rise in value each year and have an annual value increase (excluding dividends) of 5%

on the basis of this information you should salvage the following

a) what is the sale value of the shares as of 1 January this year 5
b) what is the investment's internal rate of return including increase in value and dividends received during the private person's ownership period
c) What is the present value of the investment including increase in value and dividends received? Take the necessary assumptions about any variables that are missing to calculate the present value, and explain

disregard the tax on stock dividends and gains in the statement

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