答案和详解如下： 41.Day and Associates is experiencing a period of abnormal growth. The last dividend paid by Day was $0.75. Next year, they anticipate growth in dividends and earnings of 25 percent followed by negative 5 percent growth in the second year. The company will level off to a normal growth rate of 8 percent in year three and is expected to maintain an 8 percent growth rate for the foreseeable future. Investors require a 12 percent rate of return on Day. What is the approximate amount that an investor would be willing to pay today for the two years of abnormal dividends? A) $1.55. B) $1.83. C) $1.62. D) $1.93. The correct answer was A) First find the abnormal dividends and then discount them back to the present.
$0.75 x 1.25 = $0.9375 x 0.95 = $0.89.
D1 = $0.9375; D2 = $0.89.
At this point you can use the cash flow keys with CF0 = 0, CF1= $0.9375 and CF2 = $0.89.
Compute for NPV with I/Y = 12. NPV = $1.547.
Alternatively, you can put the dividends in as future values, solve for present values and add the two together.
42.What would an investor pay for Day and Associates today?
A) $24.03. B) $19.16. C) $18.65. D) $20.71. The correct answer was D) Here we find P2 using the constant growth dividend discount model.
P2 = $0.89 x 1.08/(0.12 – 0.08) = $24.03.
Discount that back to the present at 12% for 2 periods and add it to the answer in the previous question.
N = 2; I/Y = 12; PMT = 0; FV = $24.03; Computer PV = $19.16.
Add $1.55 (the present value of the abnormal dividends) to $19.16 and you get $20.71.
43.Bybee is expected to have a temporary supernormal growth period and then level off to a “normal,” sustainable growth rate forever. The supernormal growth is expected to be 25 percent for 2 years, 20 percent for one year and then level off to a normal growth rate of 8 percent forever. The market requires a 14 percent return on the company and the company last paid a $2.00 dividend. What would the market be willing to pay for the stock today?
A) $52.68. B) $47.09. C) $76.88. D) $67.50. The correct answer was A) First, find the future dividends at the supernormal growth rate(s). Next, use the infinite period dividend discount model to find the expected price after the supernormal growth period ends. Third, find the present value of the cash flow stream. D1 = 2.00 (1.25) = 2.50 (1.25) = D2 = 3.125 (1.20) = D3 = 3.75
P2 = 3.75/(0.14 - 0.08) = 62.50
N = 1; I/Y = 14; FV = 2.50; compute PV = 2.19.
N = 2; I/Y = 14; FV = 3.125; compute PV = 2.40.
N = 2; I/Y = 14; FV = 62.50; compute PV = 48.09.
Now sum the PV’s: 2.19 + 2.40 + 48.09 = $52.68. | 
发表于 2008-4-10 17:25
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