Question

I need help with these questions how to solve these by using a financial calculator(calculator steps)

14. If the dividend is $1.85/share, market price at y ear-end is $42.50, and the required rate of return is 11%, what is the current value of the stock? 15. Your firm recently sold an asset and financed the sale of the asset. The firm took back a $60,000 loan on the equipment sale with monthly payments and 10% interest. The loan was a 5-year loan. Your firm now needs money and desires to sell the loan. If investors require 12% rate of return to invest in this type of loan and 4 payments have been made on the loan, how much will your firm receive frong the sale of this financial asset? Ina 274.82

Answer 1

Answer: Dividend = $1.851 shave Parice =$48.50 Rate of sie tworn = Iloilo So, Di= $1.85 Da = $1.85 x (178) Now, to fing g i $42.50 - $1.85 * (1+9)/ (1146-8) But solving above equation we can get | 8 - 6. 3+ + Now, Po will be Po = $1.85/C-4 – 6:377) . Po 2 $1185 . 4.6367 Po 39.956. = 39.96 f. As oue HomeworkLib policy Current value of stock = 39.96 l i can answer one question