Finance Chapter 9 Using Goal Seek Excel The Immediate Dividend

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Revised Shockley, Chapter 9 Problems:

Note: exp(*) denotes the exponential function and ln(*) denotes the natural logarithm

function

Problem 1:

$275.00*exp(4%*6/12) = $280.56

Problem 2:

Storage costs (paid immediately): $339.72*exp(-3%*12/12) – $326.50 = $3.18

Problem 3:

Problem 4:

Problem 5:

Using Goal Seek in Excel, the immediate dividend that will make the investor indifferent

Problem 6:

Using Goal Seek in Excel, the immediate dividend that will make the investor indifferent

Problem 7:

Call = [49.99%*Max([$23.95 – $3.95]*1.4191 – $22.50, 0) + 50.01%*Max([$23.95 –

Problem 8:

Problem 9:

U = 1.3231, D = 0.7558, P(U) = 50.24%, P(D) = 49.76%

Problem 10: