Question: Compute the required values under the following circumstances: (Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. D 1 =

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

a. D1 = $4.60; P0 = $60; g = 6%; F = $4.00.

Ke %
Kn %

b. D1 = $0.25; P0 = $20; g = 10%; F = $1.50.

Ke %
Kn %

c. E1 (earnings at the end of period one) = $6; payout ratio equals 30 percent; P0 = $25; g = 4.5%; F = $2.

D1 $
Ke %
Kn %

d. D0 (dividend at the beginning of the first period) = $3; growth rate for dividends and earnings (g) = 7%; P0 = $42; F = $3.00.

D1 $
Ke %
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