Compute the required values under the circumstances

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Compute the required values under the following circumstances: (Do not round intermediate calculations. Round the final answers to 2 decimal places.)

a. D1 = $4.60; P0 = $60; g = 6%; F = $4.00.

Ke  %   

Kn  % 

b. D1 = $0.25; P0 = $20; g = 10%; F = $1.50.

Ke  %

Kn  %

c. E1 (earnings at the end of period one) = $6; payout ratio equals 30 percent; P= $25; g = 4.5%; F = $2. 

D1 $

Ke  %  

Kn  % 

d. D0 (dividend at the beginning of the first period) = $3; growth rate for dividends and earnings (g) = 7%; P0 = $42; F = $3.00.

D1 $      

Ke  %   

Kn  %

Reference no: EM132705754

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