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Author Question: The required return is assumed to be 17 percent. Using the Gordon model, calculate the per share ... (Read 43 times)

Kthamas

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on: Jul 10, 2018
The required return is assumed to be 17 percent. Using the Gordon model, calculate the per share value of the stock for 2014. (See Table 7.1 )
 
  What will be an ideal response?

Question 2

Madison is taking over as Chief Marketing Officer at MidWest Graphics. She has pledged to increase sales from their current level of 12,000,000 at a rate of 10 per year until the firm hits sales of 20,000,000 per year.
 
  How long will it take Madison to hit the target goal at this rate of increase?
  A) 7.67 years
  B) 1.53 years
  C) 5.36 years
  D) At that rate, Madison will never reach the target sales level in her lifetime.


javimendoza7

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Per share value = = 109.67

Answer to Question 2

Answer: C
Explanation: C) n = = = 5.36 years
MODE = END
INPUT ? 10 -12,000,000 0 20,000,000
KEY N I/Y PV PMT FV
CPT 5.36


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