the following annual data are available for a stock market index the following annua 4375359

The following annual data are available for a stock market index: The following annual data are available for a stock market index: The 2013 values in italics are estimates. a. Calculate the 2013 values for those columns left blank. b. On the assumption that g = 0.095, calculate k for 2013 using the formula k = (D/P) +g and show that k = 0.132425. c. Using the 2013 values, show that P/E = 12.22. d. Assuming a projection that 2014 earnings will be 25 percent greater than the 2013 value, show that projected earnings are expected to be 19.05. e. Assuming further that the dividend-payout ratio will be 0.40, show that projected dividends for 2014 will be 7.62. f. Using the projected earnings and dividends for 2014, and the same k and g used in part b, show that the expected P/E for 2014 is 10.69. g. Using these expected values for 2014, show that the expected price is 203.61. h. Recalculate the values for 2014 P/E and P, using the same g = 0.095, but with (1) k = 0.14, (2) k = 0.13, and (3) k = 0.12. View Solution:
The following annual data are available for a stock market

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