S.O.S. Mathematics CyberBoard

Can anyone here help me with a business mathematics question.... ( you are considering purchasing shares of gold corp. The company has stated that they will pay a dividend of $2.25 per share every 3 months starting 2.5 years from now! If the interest rate is 12.18% compounded semi anually, what woud you be willing to pay for one share today..... I have an exam next week and she didnt teach us this style.. im so stuck and have so much mth to get done today.. can someone please help me!

Not too familiar with shares et al, but I don't think you're given sufficient
information; as it is, you buy a share today (when rate is 12.18% cpd s/a),
and 2.5 years from now, you'll have 100 + 2.50 available:
so PV is 102.50 / 1.0609^5 = 76.0836....

Sorry, that's all I can do for you; hope a share expert comes along!

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I'm not prejudiced...I hate everybody equally!

I would need to know what return you desire on your investment, and over which time period.

Work it backwards. Imagine you were going to pay $100 per share.
Then calculate your return over a period of time, say 10 years.
Now calculate the return.

To answer her question, use this result and re-create the question according to your assumptions.

Ex.
I would be willing to pay $100 for these shares to insure me y% return over 10 years.
Or something like that.

use the formula F=P(1+1/n)^nxt

where n is compounded semi annually = 1/2
t = years

F= future worth
p=present worth

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fixed odds

SamSung, you've answered a 1 year old post...losing your time!

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I'm not prejudiced...I hate everybody equally!