wholegrain Posted February 9, 2014 Share Posted February 9, 2014 http://www.westga.edu/~rbest/finc3511/sampleprobs/chapter9/ch9p6/ch9p6.html I get 81.53. I am off by like 3. I calculated PV0 7.5(1.24)/(0.18-0.24) (1-(1.18/1.24)^2) = which gave me 14.64 then I calculated PV2 and converted it to PV0b 11.53(1.05)/(0.18-0.05)/1.18^2 which gave me 66.88 I added them 66.88+14.64 which gave me 81.53 I used the formula for growing perpetuity and growing annuity Link to comment Share on other sites More sharing options...
Sensei Posted February 9, 2014 Share Posted February 9, 2014 I have not watched video. 7.5(1.24)/(0.18-0.24) (1-(1.18/1.24)^2) = which gave me 14.64 I am getting -14.637 Link to comment Share on other sites More sharing options...
wholegrain Posted February 10, 2014 Author Share Posted February 10, 2014 umm yeah thanks oh yeah its 1.24/1.18 nevermind thanks LOL Link to comment Share on other sites More sharing options...
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