Apple Clean Corp pays dividends of $5.70, $9.80, $12.65, and $14.40 respectively over the next 4 years. After the 4th dividend payment, the company will dissolve and go out of business. Using a discount rate of 10.8 percent on the company's stock, what is the estimated stock price? Multiple Choice O $36.40 $38.37 $31.98 $33.80 $44.09

Apple Clean Corp pays dividends of $5.70, $9.80, $12.65, and $14.40 respectively over the next 4 years. After the 4th dividend payment, the company will dissolve and go out of business. Using a discount rate of 10.8 percent on the company's stock, what is the estimated stock price? Multiple Choice O $36.40 $38.37 $31.98 $33.80 $44.09

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

Section: Chapter Questions

Problem 1PS

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! Required information Assume you pay the reduced amount of $4,405 for a corporate stock that has a market value of $5000. The stock pays an annual dividend of 4.5% of its market value. Since this is primarily a dividend-paying stock, you estimate that you will sell the stock 10 years from now at the current $5000 market value. Identify the spreadsheet function that displays the present worth now (year 0) of the original purchase price, dividends, and proceeds when the stock is sold after 10 years, if i= 7.1% per year. The spreadsheet function is (Click to select) , and it displays $
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You are bearish on Sienar Fleet Systems, you sold short one round lot (100 shares) at $85 per share. On March 1, a dividend of $2 per share was paid. On April 1, you covered the short sale by buying the stock for the price of $70. You paid $.25 per share in commissions for each transaction. Sienar Fleet Systems Market Price, January 1 $85.00 Market Price, March 1 $82.00 Dividend, March 1 $2.00 Market Price, April 1 $79.00 Broker Commission, per Share $0.25 Maintenance Margin 0.35 Investor Shares Sold Short 100 Required: Using the information in the tables above (the Company, the Broker, and the Investor), solve the cash flows involved in the short sale of this company. Then calculate the rate of return. (Use cells A5 to B15 from the given information to complete this question.) Short Sale Net…

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