QUESTION 7 "Suppose that next year the expected dividends of the stocks in a broad...
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QUESTION 7 "Suppose that next year the expected dividends of the stocks in a broad market index equaled $10000000 when the discount rate was 13% and the expected growth rate of the dividends equaled 5%. Using the constant-growth formula for valuation, if interest rates change to 10%, the percentage change in the value of the market index is. _. Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05" 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 $6 in dividends and $20 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 10% yearly return. QUESTION 9 "The market capitalization rate on the stock of Aberdeen Wholesale Company is 16%. Its expected ROE is 10%, and its expected EPS is $15. If the firm's plowback ratio is 30%, its P/E ratio will be
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