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Compute Ke and Kn under the following circumstances:   a

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Compute K_e and K_n under the following circumstances:

 

a. D₁ = $4.50, P₀ = $68, g = 7%, F = $6.00. 

  

 

 

 

 

 

 

b. D₁ = $0.25, P₀ = $32, g = 6%, F = $2.00. 

  

 

 

 

 

 

c. E₁ (earnings at the end of period one) = $6, payout ratio equals 35 percent, P₀ = $36, g = 5.0%, F = $3.50. 

 

 

 

 

d. D₀ (dividend at the beginning of the first period) = $5, growth rate for dividends and earnings (g) = 6%, P₀ = $58, F = $5.