Answer:
r = 0.080528395 = 8.05%
Winner's Prize at 2044: $ 15,215,114.02
Explanation:
Principal 160
Amount 1,610,000
time: 2015 - 1896 = 119
r = 0.080528395
If the same rate for the winner's prize is being keep by 2044 the winner will get:
Principal 1,610,000.00
time 29.00 (2044 - 2015)
rate 0.08053
Amount 15,215,114.02
Answer and Explanation :
Few information is missing in the question kindly find the attachment
As per the data given in the question,
The formula and the computation is shown below
1) Book value per share = Equity applicable to share ÷ share outstanding
Apple Google
Equity common share a $134,047 $152,502
Common share outstanding b 5,126.201 694.783
Book value per common share a ÷ b $26.15 $219.50
2)Basic EPS = Net income ÷ weighted Avg common share outstanding
Apple Google
Net income a $48,351 $12,662
weighted Avg common share outstanding b 5217.242 693.049
Basic EPS a ÷ b $9.27 $18.27
3)Dividend yield = Cash dividend per common share ÷ Market price per share
Apple Google
Cash dividend per common share a 2.4 0
Market price per share b $154.12 $1046.4
Dividend yield a ÷ b 1.56% 0.00%
4) Price earning ratio = Market price per share ÷ Basic EPS
Apple Google
Market price per share a $154.12 $1046.4
Basic EPS b 9.26754 18.26999
Price earning ratio a ÷ b 16.63 57.27
5) A higher PE ration indicates that investors want to pay a higher share price because of growth expectation in near by future
Therefore Google has higher PE ratio
Hence, investors have greater expectation of performance of Google in future.
