Summary Chapter 4 Exercises Solved - Corporate Finance

1 perpetuity
at Po 100

b growing
DI 41
perpetuity
Po
1g
83.33



5 tyn
0 Po
5
month o.pt
Po 5 7114075 67.36
no.pt Eo.pat O1
d 5 711107 3477.56
no.pt Eo.pat 0.1 0.815




2 a
Po 135
Ling 0095 0.0275 420

b ltrnorninal It real 1 t ringation
1 0.095 It real 1 t 0 8275
Tear 0 066 6 61
Div It ringation real Div
1 35 1 0275 RealDiv41 314
f
P 13
420
0066 j 0275

, 3
a
Ifftp we need tofind the Dir for eachyear
Div EPS payout ratio 2.5 02 0S
Div 3 02 0.6
Div 23 05 1 15
Div 2 49805 1245
ROE a plowback ratio O168 1 8 5 08 81
g
Po 05 121 23.897
Intoin Itorap a'ggaps 8,811
b Valve in
year 3 5 0.08
ROE Plowback O 168 11 J
B growthrate

Ps 1245 31125
Dig O12 ggg

9
PVGO Price with
growth
Pricewithout
growth
Pricewithout
growth fullpayout inthiscase weexcludethepayoutratio
method
Dir EPS
Pos DIY 2,129 2075

GO 31.125 2075 10 375
PV




I ding