Question: Compute the required values under the following circumstances: ( Do not round intermediate calculations. Round the final answers to 2 decimal places. ) a .

Compute the required values under the following circumstances: (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
a. D1= $5.60; P0= $72; g =9%; F = $8.00.
Ke 16.78 Numeric Response 1.Edit Unavailable. 16.78 correct.%
Kn 17.75 Numeric Response 2.Edit Unavailable. 17.75 incorrect.%
b. D1= $0.24; P0= $36; g =8%; F = $3.50.
Ke 8.67 Numeric Response 3.Edit Unavailable. 8.67 correct.%
Kn 8.74 Numeric Response 4.Edit Unavailable. 8.74 incorrect.%
c. E1(earnings at the end of period one)= $8; payout ratio equals 15 percent; P0= $36; g =7.0%; F = $2.6.
D1 $ 1.20 Numeric Response 5.Edit Unavailable. 1.20 correct.
Ke 10.33 Numeric Response 6.Edit Unavailable. 10.33 correct.%
Kn 10.59 Numeric Response 7.Edit Unavailable. 10.59 incorrect.%
d. D0(dividend at the beginning of the first period)= $7; growth rate for dividends and earnings (g)=4%; P0= $62; F = $6.00.
D1 $ 7.28 Numeric Response 8.Edit Unavailable. 7.28 correct.
Ke 15.74 Numeric Response 9.Edit Unavailable. 15.74 correct.%
Kn 17.00 Numeric Response 10.Edit Unavailable. 17.00 incorrect.%

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