Answer:
10.03%
Explanation:
Using the dividend discount formula, find the cost of equity; r
whereby,
D1 = Next year's dividend = 5.29
P0 = Current price of the stock = 79.83
g = growth rate of dividends = 3.40% or 0.034 as a decimal
Next, plug in the numbers to the formula above;
As a percentage, r = 10.03%
Therefore, the company's cost of equity is 10.03%
Answer:
Current share price is $59.88
Explanation:
First calculate present value of all four years dividend
Year Calculations PV
1. 14 x (1.10)^-1 $12.73
2. 10 x (1.10)^-2 $8.26
3. 9 x (1.10)^-3 $6.76
4. 4.5 x (1.10)^-4 $3.07
As the Dividend in fifth year will grow for indefinite period of time, This is the perpetuity payment. The value of share can be determined by calculating the present value of perpetuity payment.
Dividend in the fifth year = $4.5 x ( 1 + 4% ) = $4.68
The formula for the present value of perpetuity is as follow
Present value of perpetuity = Dividend / Required Rate of return
Value of Stock = Dividend / Required Rate of return
Value of Stock = $4.68 / 10%
Value of Stock = $46.8
This the value in fifth year calculate it present value
Today's value = $46.8 x ( 1 + 10% )^-5 = $29.06
Now add the all present values
Total Present value = $12.73 + $8.26 + $6.76 + $3.07 + $29.06 = $59.88
The unification of Germany into a politically and administratively integrated nation state officially occurred on 18 January 1871, in the Hall of Mirrors at the Palace of Versailles in France. Princes of the German states, excluding Austria, gathered there to proclaim Wilhelm I of Prussia as German Emperor after the French capitulation in the Franco-Prussian War.
Answer:
A) There is a 50% chance the game ends in a tie, 10% chance you win (and therefore a 40% chance you lose).
expected value = (50% x 20) + (10% x 50) + (40% x 0) = 10 + 5 + 0 = 15
B) There is a 50-50 chance of winning and there are no ties.
expected value = (50% x 50) + (50% x 0) + = 25 + 0 = 25
C) There is an 80% chance you lose and a 10% chance you win or tie.
expected value = (10% x 20) + (10% x 50) + (80% x 0) = 2 + 5 + 0 = 7
The expected value of an event is determined by adding up all the possible outcomes multiplied by their respective value.
Answer: ...they were invested and had to protect their own wealth.
Explanation:
The constitution's framers of America were founding fathers and visionaries. They designed the America's constitution to endure times and to stand the pressures of being a new country. They also aimed at addressing not only the specific challenges facing the nation during their lifetimes, but they also tried to establish the foundational principles that would lead and guide the young nation into an uncertain future of our days.
