MONEY and BANKING LECTURE NOTES LOW GRAPHICS

GROWTH OF  THE FIRM
AND THE VALUE  OF ITS SHARE

Loading of the spread sheet takes time!

     Capital Profit Reinvest. Dividend
   t K=K(-1)+I Y=bK I=aY D=(1-a)Y

IN $ PER SHARE

0   20.00 6.00 1.20 4.80
Reinvest. ratio a 20% 1 21.20 6.36 1.27 5.09
Profit (ROE) b 30.00% 2 22.47 6.74 1.35 5.39
Discount Rate r 15.00% 3 23.82 7.15 1.43 5.72
Initial Capital Ko 20.00 4 25.25 7.57 1.51 6.06
Initial Profit Yo 6.00 5 26.76 8.03 1.61 6.42
Initial Dividend Do 4.80 6 28.37 8.51 1.70 6.81
Rate of Growth g 6.00% 7 30.07 9.02 1.80 7.22
    8 31.88 9.56 1.91 7.65
Value of a share: 9 33.79 10.14 2.03 8.11
PV dividend flow PVa 53.33 10 35.82 10.75 2.15 8.60
PV = Do/(r-g) PVb 53.33 11 37.97 11.39 2.28 9.11
    12 40.24 12.07 2.41 9.66
    13 42.66 12.80 2.56 10.24
    14 45.22 13.57 2.71 10.85
    15 47.93 14.38 2.88 11.50
    16 50.81 15.24 3.05 12.19
    17 53.86 16.16 3.23 12.93
    18 57.09 17.13 3.43 13.70
    19 60.51 18.15 3.63 14.52
    20 64.14 19.24 3.85 15.39
    21 67.99 20.40 4.08 16.32
    22 72.07 21.62 4.32 17.30
    23 76.39 22.92 4.58 18.33
    24 80.98 24.29 4.86 19.43
    25 85.84 25.75 5.15 20.60
    26 90.99 27.30 5.46 21.84
    27 96.45 28.93 5.79 23.15
    28 102.23 30.67 6.13 24.54
    29 108.37 32.51 6.50 26.01
    30 114.87 34.46 6.89 27.57
    31 121.76 36.53 7.31 29.22
    32 129.07 38.72 7.74 30.98
    33 136.81 41.04 8.21 32.83
    34 145.02 43.51 8.70 34.80
    35 153.72 46.12 9.22 36.89
    36 162.95 48.88 9.78 39.11
    37 172.72 51.82 10.36 41.45
    38 183.09 54.93 10.99 43.94
    39 194.07 58.22 11.64 46.58
    40 205.71 61.71 12.34 49.37
    41 218.06 65.42 13.08 52.33
    42 231.14 69.34 13.87 55.47
    43 245.01 73.50 14.70 58.80
    44 259.71 77.91 15.58 62.33
    45 275.29 82.59 16.52 66.07
    46 291.81 87.54 17.51 70.03
    47 309.32 92.80 18.56 74.24
    48 327.88 98.36 19.67 78.69
    49 347.55 104.27 20.85 83.41
    50 368.40 110.52 22.10 88.42
    51 390.51 117.15 23.43 93.72
    52 413.94 124.18 24.84 99.35
    53 438.77 131.63 26.33 105.31
    54 465.10 139.53 27.91 111.62
    55 493.01 147.90 29.58 118.32
    56 522.59 156.78 31.36 125.42
    57 553.94 166.18 33.24 132.95
    58 587.18 176.15 35.23 140.92
    59 622.41 186.72 37.34 149.38
    60 659.75 197.93 39.59 158.34
    61 699.34 209.80 41.96 167.84
    62 741.30 222.39 44.48 177.91
    63 785.78 235.73 47.15 188.59
    64 832.92 249.88 49.98 199.90
    65 882.90 264.87 52.97 211.90
    66 935.87 280.76 56.15 224.61
    67 992.03 297.61 59.52 238.09
    68 1051.55 315.46 63.09 252.37
    69 1114.64 334.39 66.88 267.51
    70 1181.52 354.46 70.89 283.56
    71 1252.41 375.72 75.14 300.58
    72 1327.55 398.27 79.65 318.61
    73 1407.21 422.16 84.43 337.73
    74 1491.64 447.49 89.50 357.99
    75 1581.14 474.34 94.87 379.47
    76 1676.01 502.80 100.56 402.24
    77 1776.57 532.97 106.59 426.38
    78 1883.16 564.95 112.99 451.96
    79 1996.15 598.85 119.77 479.08
    80 2115.92 634.78 126.96 507.82
    81 2242.88 672.86 134.57 538.29
    82 2377.45 713.23 142.65 570.59
    83 2520.09 756.03 151.21 604.82
    84 2671.30 801.39 160.28 641.11
    85 2831.58 849.47 169.89 679.58
    86 3001.47 900.44 180.09 720.35
    87 3181.56 954.47 190.89 763.57
    88 3372.45 1011.74 202.35 809.39
    89 3574.80 1072.44 214.49 857.95
    90 3789.29 1136.79 227.36 909.43
    91 4016.65 1204.99 241.00 964.00
    92 4257.65 1277.29 255.46 1021.84
    93 4513.11 1353.93 270.79 1083.15
    94 4783.89 1435.17 287.03 1148.13
    95 5070.93 1521.28 304.26 1217.02
    96 5375.18 1612.55 322.51 1290.04
    97 5697.69 1709.31 341.86 1367.45
    98 6039.55 1811.87 362.37 1449.49
    99 6401.93 1920.58 384.12 1536.46
    100 6786.04 2035.81 407.16 1628.65
    101 7193.20 2157.96 431.59 1726.37
    102 7624.80 2287.44 457.49 1829.95
    103 8082.28 2424.69 484.94 1939.75
    104 8567.22 2570.17 514.03 2056.13
    105 9081.25 2724.38 544.88 2179.50
    106 9626.13 2887.84 577.57 2310.27
    107 10203.70 3061.11 612.22 2448.89
    108 10815.92 3244.78 648.96 2595.82
    109 11464.87 3439.46 687.89 2751.57
    110 12152.77 3645.83 729.17 2916.66
    111 12881.93 3864.58 772.92 3091.66
    112 13654.85 4096.45 819.29 3277.16
    113 14474.14 4342.24 868.45 3473.79
    114 15342.59 4602.78 920.56 3682.22
    115 16263.14 4878.94 975.79 3903.15
    116 17238.93 5171.68 1034.34 4137.34
    117 18273.27 5481.98 1096.40 4385.58
    118 19369.66 5810.90 1162.18 4648.72
    119 20531.84 6159.55 1231.91 4927.64
    120 21763.75 6529.13 1305.83 5223.30
    121 23069.58 6920.87 1384.17 5536.70
    122 24453.76 7336.13 1467.23 5868.90
    123 25920.98 7776.29 1555.26 6221.04
    124 27476.24 8242.87 1648.57 6594.30
    125 29124.81 8737.44 1747.49 6989.96
    126 30872.30 9261.69 1852.34 7409.35
    127 32724.64 9817.39 1963.48 7853.91
    128 34688.12 10406.44 2081.29 8325.15
    129 36769.41 11030.82 2206.16 8824.66
    130 38975.57 11692.67 2338.53 9354.14
    131 41314.10 12394.23 2478.85 9915.39
    132 43792.95 13137.89 2627.58 10510.31
    133 46420.53 13926.16 2785.23 11140.93
    134 49205.76 14761.73 2952.35 11809.38
    135 52158.11 15647.43 3129.49 12517.95
    136 55287.59 16586.28 3317.26 13269.02
    137 58604.85 17581.45 3516.29 14065.16
    138 62121.14 18636.34 3727.27 14909.07
    139 65848.41 19754.52 3950.90 15803.62
    140 69799.31 20939.79 4187.96 16751.83
    141 73987.27 22196.18 4439.24 17756.94
    142 78426.51 23527.95 4705.59 18822.36
    143 83132.10 24939.63 4987.93 19951.70
    144 88120.02 26436.01 5287.20 21148.81
    145 93407.22 28022.17 5604.43 22417.73
    146 99011.66 29703.50 5940.70 23762.80
    147 104952.36 31485.71 6297.14 25188.57
    148 111249.50 33374.85 6674.97 26699.88
    149 117924.47 35377.34 7075.47 28301.87
    150 124999.93 37499.98 7500.00 29999.98
    151 132499.93 39749.98 7950.00 31799.98
    152 140449.93 42134.98 8427.00 33707.98
    153 148876.92 44663.08 8932.62 35730.46
    154 157809.54 47342.86 9468.57 37874.29
    155 167278.11 50183.43 10036.69 40146.75
    156 177314.80 53194.44 10638.89 42555.55
    157 187953.68 56386.11 11277.22 45108.88
    158 199230.90 59769.27 11953.85 47815.42
    159 211184.76 63355.43 12671.09 50684.34
    160 223855.84 67156.75 13431.35 53725.40
    161 237287.20 71186.16 14237.23 56948.93
    162 251524.43 75457.33 15091.47 60365.86
    163 266615.89 79984.77 15996.95 63987.81
    164 282612.85 84783.85 16956.77 67827.08
    165 299569.62 89870.89 17974.18 71896.71
    166 317543.79 95263.14 19052.63 76210.51
    167 336596.42 100978.93 20195.79 80783.14
    168 356792.21 107037.66 21407.53 85630.13
    169 378199.74 113459.92 22691.98 90767.94
    170 400891.72 120267.52 24053.50 96214.01
    171 424945.23 127483.57 25496.71 101986.85
    172 450441.94 135132.58 27026.52 108106.07
    173 477468.46 143240.54 28648.11 114592.43
    174 506116.56 151834.97 30366.99 121467.98
    175 536483.56 160945.07 32189.01 128756.05
    176 568672.57 170601.77 34120.35 136481.42
    177 602792.93 180837.88 36167.58 144670.30
    178 638960.50 191688.15 38337.63 153350.52
    179 677298.13 203189.44 40637.89 162551.55
    180 717936.02 215380.81 43076.16 172304.64
    181 761012.18 228303.65 45660.73 182642.92
    182 806672.91 242001.87 48400.37 193601.50
    183 855073.29 256521.99 51304.40 205217.59
    184 906377.68 271913.31 54382.66 217530.64
    185 960760.35 288228.10 57645.62 230582.48
    186 1018405.97 305521.79 61104.36 244417.43
    187 1079510.32 323853.10 64770.62 259082.48
    188 1144280.94 343284.28 68656.86 274627.43
    189 1212937.80 363881.34 72776.27 291105.07
    190 1285714.07 385714.22 77142.84 308571.38
    191 1362856.91 408857.07 81771.41 327085.66
    192 1444628.33 433388.50 86677.70 346710.80
    193 1531306.03 459391.81 91878.36 367513.45
    194 1623184.39 486955.32 97391.06 389564.25
    195 1720575.45 516172.64 103234.53 412938.11
    196 1823809.98 547142.99 109428.60 437714.39
    197 1933238.58 579971.57 115994.31 463977.26
    198 2049232.89 614769.87 122953.97 491815.89
    199 2172186.87 651656.06 130331.21 521324.85
    200 2302518.08 690755.42 138151.08 552604.34
    201 2440669.16 732200.75 146440.15 585760.60
    202 2587109.31 776132.79 155226.56 620906.23
    203 2742335.87 822700.76 164540.15 658160.61
    204 2906876.02 872062.81 174412.56 697650.25
    205 3081288.58 924386.58 184877.32 739509.26
    206 3266165.90 979849.77 195969.95 783879.82
    207 3462135.85 1038640.76 207728.15 830912.60
    208 3669864.00 1100959.20 220191.84 880767.36
    209 3890055.84 1167016.75 233403.35 933613.40
    210 4123459.20 1237037.76 247407.55 989630.21
    211 4370866.75 1311260.02 262252.00 1049008.02
    212 4633118.75 1389935.63 277987.13 1111948.50
    213 4911105.88 1473331.76 294666.35 1178665.41
    214 5205772.23 1561731.67 312346.33 1249385.34
    215 5518118.56 1655435.57 331087.11 1324348.46
    216 5849205.68 1754761.70 350952.34 1403809.36
    217 6200158.02 1860047.41 372009.48 1488037.92
    218 6572167.50 1971650.25 394330.05 1577320.20
    219 6966497.55 2089949.26 417989.85 1671959.41
    220 7384487.40 2215346.22 443069.24 1772276.98
    221 7827556.65 2348266.99 469653.40 1878613.60
    222 8297210.04 2489163.01 497832.60 1991330.41
    223 8795042.65 2638512.79 527702.56 2110810.24
    224 9322745.21 2796823.56 559364.71 2237458.85
    225 9882109.92 2964632.98 592926.60 2371706.38
    226 10475036.51 3142510.95 628502.19 2514008.76
    227 11103538.70 3331061.61 666212.32 2664849.29
    228 11769751.03 3530925.31 706185.06 2824740.25
    229 12475936.09 3742780.83 748556.17 2994224.66
    230 13224492.25 3967347.68 793469.54 3173878.14
    231 14017961.79 4205388.54 841077.71 3364310.83
    232 14859039.50 4457711.85 891542.37 3566169.48
    233 15750581.87 4725174.56 945034.91 3780139.65
    234 16695616.78 5008685.03 1001737.01 4006948.03
    235 17697353.78 5309206.14 1061841.23 4247364.91
    236 18759195.01 5627758.50 1125551.70 4502206.80
    237 19884746.71 5965424.01 1193084.80 4772339.21
    238 21077831.52 6323349.45 1264669.89 5058679.56
    239 22342501.41 6702750.42 1340550.08 5362200.34
    240 23683051.49 7104915.45 1420983.09 5683932.36
    241 25104034.58 7531210.37 1506242.07 6024968.30
    242 26610276.66 7983083.00 1596616.60 6386466.40
    243 28206893.25 8462067.98 1692413.60 6769654.38
    244 29899306.85 8969792.05 1793958.41 7175833.64
    245 31693265.26 9507979.58 1901595.92 7606383.66
    246 33594861.18 10078458.35 2015691.67 8062766.68
    247 35610552.85 10683165.85 2136633.17 8546532.68
    248 37747186.02 11324155.81 2264831.16 9059324.64
    249 40012017.18 12003605.15 2400721.03 9602884.12
    250 42412738.21 12723821.46 2544764.29 10179057.17
    251 44957502.50 13487250.75 2697450.15 10789800.60
    252 47654952.65 14296485.80 2859297.16 11437188.64
    253 50514249.81 15154274.94 3030854.99 12123419.95
    254 53545104.80 16063531.44 3212706.29 12850825.15
    255 56757811.09 17027343.33 3405468.67 13621874.66
    256 60163279.75 18048983.93 3609796.79 14439187.14
    257 63773076.54 19131922.96 3826384.59 15305538.37
    258 67599461.13 20279838.34 4055967.67 16223870.67
    259 71655428.80 21496628.64 4299325.73 17197302.91
    260 75954754.53 22786426.36 4557285.27 18229141.09
    261 80512039.80 24153611.94 4830722.39 19322889.55
    262 85342762.19 25602828.66 5120565.73 20482262.92
    263 90463327.92 27138998.38 5427799.68 21711198.70
    264 95891127.59 28767338.28 5753467.66 23013870.62
    265 101644595.25 30493378.57 6098675.71 24394702.86
    266 107743270.96 32322981.29 6464596.26 25858385.03
    267 114207867.22 34262360.17 6852472.03 27409888.13
    268 121060339.25 36318101.78 7263620.36 29054481.42
    269 128323959.61 38497187.88 7699437.58 30797750.31
    270 136023397.18 40807019.16 8161403.83 32645615.32
    271 144184801.02 43255440.30 8651088.06 34604352.24
    272 152835889.08 45850766.72 9170153.34 36680613.38
    273 162006042.42 48601812.73 9720362.55 38881450.18
    274 171726404.97 51517921.49 10303584.30 41214337.19
    275 182029989.26 54608996.78 10921799.36 43687197.42
    276 192951788.62 57885536.59 11577107.32 46308429.27
    277 204528895.94 61358668.78 12271733.76 49086935.03
    278 216800629.69 65040188.91 13008037.78 52032151.13
    279 229808667.48 68942600.24 13788520.05 55154080.19
    280 243597187.52 73079156.26 14615831.25 58463325.01
    281 258213018.78 77463905.63 15492781.13 61971124.51
    282 273705799.90 82111739.97 16422347.99 65689391.98
    283 290128147.90 87038444.37 17407688.87 69630755.50
    284 307535836.77 92260751.03 18452150.21 73808600.82
    285 325987986.98 97796396.09 19559279.22 78237116.87
    286 345547266.20 103664179.86 20732835.97 82931343.89
    287 366280102.17 109884030.65 21976806.13 87907224.52
    288 388256908.30 116477072.49 23295414.50 93181657.99
    289 411552322.79 123465696.84 24693139.37 98772557.47
    290 436245462.16 130873638.65 26174727.73 104698910.92
    291 462420189.89 138726056.97 27745211.39 110980845.57
    292 490165401.29 147049620.39 29409924.08 117639696.31
    293 519575325.36 155872597.61 31174519.52 124698078.09
    294 550749844.88 165224953.47 33044990.69 132179962.77
    295 583794835.58 175138450.67 35027690.13 140110760.54
    296 618822525.71 185646757.71 37129351.54 148517406.17
    297 655951877.26 196785563.18 39357112.64 157428450.54
    298 695308989.89 208592696.97 41718539.39 166874157.57
    299 737027529.28 221108258.79 44221651.76 176886607.03
    300 781249181.04 234374754.31 46874950.86 187499803.45
    301 828124131.90 248437239.57 49687447.91 198749791.66
    302 877811579.82 263343473.95 52668694.79 210674779.16
    303 930480274.61  279144082.38 55828816.48 223315265.91

 

 

 

Designed and maintained by Oldrich Kyn .
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use the  following e-mail address:

okyn@bu.edu