QUESTION 7 "Suppose that next year the expected dividends of the stocks in a broad market index equaled $10,000,000 when

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Question 7 Suppose That Next Year The Expected Dividends Of The Stocks In A Broad Market Index Equaled 10 000 000 When 1 (53.33 KiB) Viewed 28 times

QUESTION 7 "Suppose that next year the expected dividends of the stocks in a broad market index equaled $10,000,000 when the discount rate was 10% and the expected growth rate of the dividends equaled 4%. Using the constant-growth formula for valuation, if interest rates change to 9%, the percentage change in the value of the market index Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05" is QUESTION 8 You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You expect to receive both $2 in dividends and $5 from the sale of the share at the end of the holding period. The maximum price you would pay for a share today is if you wanted to earn a 5% yearly return.