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 = $6.00; P0 = $74; g = 5%; F = $5.00.

Ke %
Kn %

b. D1 = $0.30; P0 = $34; g = 9%; F = $2.50.

Ke %
Kn %

c. E1 (earnings at the end of period one) = $9; payout ratio equals 20 percent; P0 = $38; g = 8.0%; F = $3.1.

D1 $
Ke %
Kn %

d. D0 (dividend at the beginning of the first period) = $8; growth rate for dividends and earnings (g) = 3%; P0 = $64; F = $2.00.

D1 $
Ke %
Kn %

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