Required information Assume you pay the reduced amount of $4,670 for a corporate stock that has a market value of $5000. The stock pays an annual dividend of 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 O) of the original purchase price, dividends, and proceeds when the stock is sold after 10 years, if /= 7.2% per year. The spreadsheet function is PV (7.2%.10.250.5000)-4670, and it displays $[
Required information Assume you pay the reduced amount of $4,670 for a corporate stock that has a market value of $5000. The stock pays an annual dividend of 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 O) of the original purchase price, dividends, and proceeds when the stock is sold after 10 years, if /= 7.2% per year. The spreadsheet function is PV (7.2%.10.250.5000)-4670, and it displays $[
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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cant figure out what $$ displays, the spreadsheet function is correct
Transcribed Image Text:Required information
Assume you pay the reduced amount of $4,670 for a corporate stock that has a market value of $5000. The stock pays an
annual dividend of 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 O) of the original purchase price, dividends, and proceeds
when the stock is sold after 10 years, if /= 7.2% per year.
The spreadsheet function is-PV(7.2 % 10.250,5000)-4670, and it displays $
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