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Chapter 7 _________________________________ MyFinanceLab Solutions 12/24/2007 12/24/2008 0 100 200 300 400 500 600 700 Titman/Keown/Martin Financial Management 11e 1
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Page 1: Chapter 7wpscms.pearsoncmg.com/.../chapter07.pdf · MyFinanceLab Solutions ... 11% 15% 19% 0 10 20 30 40 50 60 70 ... Chapter 7 _____ MyFinanceLab Solutions Time Value of Barris Stock

Chapter 7_________________________________

MyFinanceLab Solutions

12/24/2007 12/24/20080

100200

300400

500

600700

Titman/Keown/Martin Financial Management 11e 1

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Chapter 7_________________________________

MyFinanceLab Solutions

2 Titman/Keown/Martin Financial Management 11e

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Chapter 7_________________________________MyFinanceLab Solutions

12/24/2007 12/24/20080

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600800

1000

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Titman/Keown/Martin Financial Management 11e 3

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Chapter 7_________________________________

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4 Titman/Keown/Martin Financial Management 11e

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Chapter 7_________________________________MyFinanceLab Solutions

one year ago today02468

101214

Titman/Keown/Martin Financial Management 11e 5

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Chapter 7_________________________________

MyFinanceLab Solutions

6 Titman/Keown/Martin Financial Management 11e

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Chapter 7_________________________________MyFinanceLab Solutions

one year ago today02468

101214161820

Titman/Keown/Martin Financial Management 11e 7

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Chapter 7_________________________________

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8 Titman/Keown/Martin Financial Management 11e

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Chapter 7_________________________________MyFinanceLab Solutions

one year ago today02468

101214161820

Titman/Keown/Martin Financial Management 11e 9

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Chapter 7_________________________________

MyFinanceLab Solutions

10 Titman/Keown/Martin Financial Management 11e

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Chapter 7_________________________________MyFinanceLab Solutions

Time Asman Salinas

Time 1 Time 2 Time 3 Time 402468

101214

Titman/Keown/Martin Financial Management 11e 11

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Chapter 7_________________________________

MyFinanceLab Solutions

12 Titman/Keown/Martin Financial Management 11e

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Chapter 7_________________________________MyFinanceLab Solutions

Time 1 Time 2 Time 3 Time 4048

12162024283236

Titman/Keown/Martin Financial Management 11e 13

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Chapter 7_________________________________

MyFinanceLab Solutions

14 Titman/Keown/Martin Financial Management 11e

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Chapter 7_________________________________MyFinanceLab Solutions

Titman/Keown/Martin Financial Management 11e 15

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Chapter 7_________________________________

MyFinanceLab Solutions

Probability Return

-3% 2% 4% 6%0102030405060

16 Titman/Keown/Martin Financial Management 11e

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Chapter 7_________________________________MyFinanceLab Solutions

( ) ( ) ( ) ( )

Titman/Keown/Martin Financial Management 11e 17

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Chapter 7_________________________________

MyFinanceLab Solutions

[ ]( ) [ ]( ) [ ]( )

( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )[ ]

18 Titman/Keown/Martin Financial Management 11e

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Chapter 7_________________________________MyFinanceLab Solutions

Common Stock A Common Stock B

Probability Return Probability Return

11% 15% 19%010203040506070

Titman/Keown/Martin Financial Management 11e 19

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Chapter 7_________________________________

MyFinanceLab Solutions

( ) ( ) ( )

20 Titman/Keown/Martin Financial Management 11e

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Chapter 7_________________________________MyFinanceLab Solutions

[ ]( ) [ ]( ) [ ]( )

( ) ( ) ( ) ( ) ( ) ( )[ ]

( ) ( ) ( ) ( )

[ ]( ) [ ]( ) [ ]( )

( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )[ ]

Titman/Keown/Martin Financial Management 11e 21

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Chapter 7_________________________________

MyFinanceLab Solutions

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Chapter 7_________________________________MyFinanceLab Solutions

Time Caswell

Titman/Keown/Martin Financial Management 11e 23

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Chapter 7_________________________________

MyFinanceLab Solutions

24 Titman/Keown/Martin Financial Management 11e

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Chapter 7_________________________________MyFinanceLab Solutions

( )

Titman/Keown/Martin Financial Management 11e 25

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Chapter 7_________________________________

MyFinanceLab Solutions

( ) ( ) ( ) ( )[ ]

26 Titman/Keown/Martin Financial Management 11e

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Chapter 7_________________________________MyFinanceLab Solutions

Time Brangus

Titman/Keown/Martin Financial Management 11e 27

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Chapter 7_________________________________

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Chapter 7_________________________________MyFinanceLab Solutions

( )

Titman/Keown/Martin Financial Management 11e 29

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Chapter 7_________________________________

MyFinanceLab Solutions

( ) ( ) ( ) ( )[ ]

30 Titman/Keown/Martin Financial Management 11e

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Chapter 7_________________________________MyFinanceLab Solutions

Time Barris Carson

Titman/Keown/Martin Financial Management 11e 31

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Chapter 7_________________________________

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Chapter 7_________________________________MyFinanceLab Solutions

( )

( )

( ) ( ) ( )[ ]

( ) ( ) ( )[ ]

Titman/Keown/Martin Financial Management 11e 33

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Chapter 7_________________________________

MyFinanceLab Solutions

Time Value of Barris Stock Annual Rate

of ReturnValue of

Carson Stock Annual Rate of Return

34 Titman/Keown/Martin Financial Management 11e

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Chapter 7_________________________________MyFinanceLab Solutions

Time 1 Time 2 Time 3 Time 402468

101214161820

Barris Company

Time 1 Time 2 Time 3 Time 4048

1216202428323640

Carson Company

Titman/Keown/Martin Financial Management 11e 35

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Chapter 7_________________________________

MyFinanceLab Solutions

( ) ( )

( ) ( )

36 Titman/Keown/Martin Financial Management 11e

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Chapter 7_________________________________MyFinanceLab Solutions

Titman/Keown/Martin Financial Management 11e 37


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