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
Related questions
Question
100%
What type of model is this showing?
Transcribed Image Text:FVs
D
CF=D+P
value
1
3.1
3.1
$62.97 npv(RR,list of FVs)
2
3.1
3.1
3.1
3.1
3.1
81
84.1
price quote
$70
value today = sum of PV of FVs
%3D
RR
11%
Buy/Sell/Hold?
SELL
t
D
CF
NPV
$75.75
1
25
$
25.0000
2
15
$
15.0000
quote
$
70.00
3
6.6
$
6.6000
buy/sell/hold?
4
3.1
54.76666667 $
57.8667 P4 = D5 / (RR - g)
3.286
long g
6%
D5 = D4 * (1+g)
RR
12%
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