You are using a dividend discount model to value Bank D, which is expected to generate a 15% return

You are using a dividend discount model to value Bank D, which is expected to generate a 15% return on equity in perpetuity. The company paid dividends of exist40 million on net income of exist100 million in the most recent year and is expected to maintain high growth for the next 3 years, before settling Into stable growth, growing 3% a year in perpetuity If the cost of equity is 9%, estimate the terminal value at the end of year 3. Please show your calculations. a. exist444 63 million
b. exist1778.51 million
c. exist880.25 million
d. exist222.31 million
e. None of the above

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  1. 2.09

    Explanation:

    Given the following ;

    Strike price (K) = $50

    Price (c) = $6

    Rate (r) = 6% = 0.06

    Stock price (So) = $51

    Time (T) = 1

    Recall, relation for a put-call parity(p) is given by:

    p + So = c + Ke^-(rT)

    p = c + [Ke^-(rT)] - So

    p = 6 + [50e^-(0.06 × 1)] - 51

    p = 6 + [50×e^-0.06] - 51

    p = 6 + (50 × 0.9417645) - 51

    p = 6 + 47.0882267 - 51

    p = 53.0882267 - 51

    p = 2.0882267

    p = 2.09

  2. 14 cabins

    Step-by-step explanation:

    16 ÷ 2 = 8 in 1 cabin

    112 ÷ 8 = 14 cabins

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    Hope this helps

    Have a great day!!

  3. 48

    first, i made it into 36/1 • 3/4
    next, i reciprocated the second fraction to make it 4/3
    my new equations was 36/1 • 4/3
    then, i multiplied the numerators together and got 144
    finally, i multiplied the denominators together and got 3

    combined into a fraction that is 144/3 and in simplest form that’s 48

  4. 48 ( but if u want it in a fraction its 144/3)

    Step-by-step explanation:

    ok so do 36 over 1 divided by 3/4

    so first remember keep change flip

    keep 36 over 1

    change the sign from division to multiplication

    flip 3/4 to 4/3

    now multiply

    Hope this helps! 😀

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  5. You are supposed to divide in this problem. You divide 1/2 by 3 by changing 3 to its reciprocal which is 1/3. Then you multiply 1/2 by 1/3 and get 1/6 s you answer.

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