PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
7th Edition
ISBN: 9780357033647
Author: Billingsley
Publisher: CENGAGE L
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Chapter 12, Problem 3FPE

The price of Outdoor Designs, Inc. is now $85. The company pays no dividends. Fred Gray expects the price four years from now to be $125 a share. Should Fred buy Outdoor Designs if he wants a 15 percent rate of return? Explain.

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The price of Landscapes Inc. is now $85. The company pays no dividends. Troy Compton expects the price four years from now to be $125 a share. Should Troy buy Landscapes if he wants a 15 percent rate of return? Explain.
You Invest $3000 by buying 100 shares of Driss Inc at a price of $30 per share. One year from now, Driss pays you a dividend of 40 cents per share. One year later (i.e. two years from now), you get another dividend of 40 cents per share and you immediately sell your shares for $32 each. What return (IRR) did you get on your investment? (Do not round intermediate calculations. Report your result as a percentage. Round the final answers to 2 decimal places. Be careful - Excel's default is to report whole precentage points. Omit the % sign in your response. For example, if your answer is 3.21%, just enter 3.21)
you are considering the purchase of zee company stock. you anticipate that the company will pay dividends of $3.50 per share next year and $4.00 per the following year. you believe that you can sale the stock for $20.00 per share two years from now. if your required rate is 10 percent, what is the maximum price that you would pay for a share of Zee company stock?   Please don't provide answer in image format thank you
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