(求助)簡易Finance金融問題3條

4. The expected dividend next year is $1.30 and dividends are expected to grow at 5% forever. If the discount rate is 10%, what is the value of this promised
dividend stream?

This is the typical "constant dividend growth model" for common stock valuation.

Price of Stock = Divide x (1 + growth rate) / (required return rate - growth rate)

In this case use the discount rate as the required return rate.

The value of this promised dividend stream is the value of the stock:


$1.30 x (1.05) / (0.10 - 0.05)

5. If you can afford a $400 monthly car payment, how much car can you afford if
interest rates are 7% on 36-month loans?

The car price is the PV
Periodic payment is $400
frequency is monthly
Annual interest rate is 7 %
No of period = 36
Use a financial calculator to calculate the PV (present value), which is the price of the car you can afford.


6. A defined-benefit retirement plan offers to pay $20,000 per year for 40 years
and increase the annual payment by 3-percent each year. What is the present
value at retirement if the discount rate is 10-percent?

Calculate the future value of the retirement benefit at retirement:
R= 20,000
N = 40
i = 3% per year

Input the calculated amount as FV,
N=40
i = 10% per year
calculate the PV of the lum sum FV.



2010-02-25 13:17:46 補充：
correction: Dividend was spelled as Divide.
should be: Price of Stock = Dividend x (1 + growth rate) / (required return rate - growth rate)