Can anybody explain how question #4 and #7 is found ? Thanks !
>>1083422
F=MA
>>1083422
Are you self studying or is it some course/degree?
>>1083464
7) is probably 25000 * 0,96 = 24000
divide that by 150.000 and you get 17%
the other one is too much technicals and I can't bother to open my corporate finance textbook.
What is this for senpai
>>1083422
It's too hard for me. I'm chemical engineer.
>#4
Justified price = D / (r - g)
= (2.50 * .5) / ( .125 - .05) = 22.72
Justified forward PE = 22.72 / 2.50 = 9.09
>#7
Real return ~= Nominal Return - Inflation
~= .1667 - .04 = .1267