Reference no: EM132351112
1. Compute Ke and Kn under the following circumstances:
a. D1 = $4.60, P0 = $92, g = 6%, F = $5.00. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Ke______%
Kn_______%
b. D1 = $.26, P0 = $25, g = 6%, F = $2.50. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Ke______%
Kn_______%
c. E1 (earnings at the end of period one) = $5, payout ratio equals 40 percent, P0 = $29, g = 8.5%, F = $2.80. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Ke_______%
Kn________%
d. D0 (dividend at the beginning of the first period) = $4, growth rate for dividends and earnings (g) = 7%, P0 = $55, F = $5. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Ke________%
Kn_________%