Instruction lecture

1)
EPS 0 18.5
Growth 14% EPS
Growth after 9%
Payout 40%
Retention 60%
G= 5.40%

Dividend Y6 15.53

Intrinsic Value € 79.24


3)
T 1 2
Payment 50 50
PV 48.0769231 46.2278107
48.0769231

a) Price today € 1,052.42




Price 6 months € 1,044.52

b) 6-Month rate of return?

* include coupon you get
4.00% + capital gain

5)

a/c) YTM 4%
Coupon € 2,500.00
Principal € 50,000.00

Price now € 51,814.95


b/c) Duration =t x Wt

, Wt t
Wt 1 0.04639291 1
Wt 2 0.04460857 2
Wt 3 0.04289285 3
Wt 4 0.86610567 4

Check 1.0