Question: Compute K e and K n under the following circumstances: a. D 1 = $3.80, P 0 = $110, g = 7%, F = $7.00.

Compute Ke and Kn under the following circumstances:
a.

D1 = $3.80, P0 = $110, g = 7%, F = $7.00. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Ke %
Kn %

b.

D1 = $.44, P0 = $39, g = 7%, F = $2.00. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Ke %
Kn %

c.

E1 (earnings at the end of period one) = $14, payout ratio equals 25 percent, P0 = $47, g = 4.8%, F = $4.50. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Ke %
Kn %

d.

D0 (dividend at the beginning of the first period) = $5, growth rate for dividends and earnings (g) = 6%,P0 = $73, F = $3. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Ke %
Kn %

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