EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 7, Problem 23P
Summary Introduction
To determine: Current value of stock.
Given information:
Expected rate of growth: 20% (for upcoming 7 years)
Expected increase in the value of stocks: $40
Required
Calculation of current value of stock:
FV refers to
i is interest rate,
n is number of periods,
PVIF refers to a used for calculation.
Therefore, the company stock value will be $20.25
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Chapter 7 Solutions
EBK CONTEMPORARY FINANCIAL MANAGEMENT
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