Principles-of-Corporate-Finance-英文第十版习题解答Chap004.docVIP

Chapter04-TheValueofCommonStocks

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CHAPTER4

TheValueofCommonStocks

AnswerstoProblemSets

1. a. True

b. True

2. Investorswhobuystocksmaygettheirreturnfromcapitalgainsaswellasdividends.Butthefuturestockpricealwaysdependsonsubsequentdividends.Thereisnoinconsistency.

3. P0=(5+110)/1.08=$106.48

4. r=5/40=.125.

5. P0=10/(.08-.05)=$333.33.

6. Byyear5,earningswillgrowto$18.23pershare.Forecastedpricepershareat

year4is18.23/.08=$227.91.

7. 15/.08+PVGO=333.33;thereforePVGO=$145.83.