The present value of an annuity of n periodic payments of P at r% where payment is made annually is given by:
![PV=P \left[\frac{1-(1+r)^{-n}}{r} \right]](https://tex.z-dn.net/?f=PV%3DP%20%5Cleft%5B%5Cfrac%7B1-%281%2Br%29%5E%7B-n%7D%7D%7Br%7D%20%5Cright%5D)
Given that <span>Estes
Park Corp. pays a constant dividend of P = $6.95 on its stock. The company
will maintain this dividend for the next n = 12 years and will then cease
paying dividends forever. If the required return on this stock is r = 10 % = 0.1.
Thus, the current share price is given by:
![Current \ share \ price=6.95 \left[\frac{1-(1+0.1)^{-12}}{0.1} \right] \\ \\ =6.95\left[\frac{1-(1.1)^{-12}}{0.1} \right] =6.95\left(\frac{1-0.3186}{0.1} \right)=6.95\left(\frac{0.6814}{0.1} \right) \\ \\ =6.95(6.813)=\bold{\$47.36}](https://tex.z-dn.net/?f=Current%20%5C%20share%20%5C%20price%3D6.95%20%5Cleft%5B%5Cfrac%7B1-%281%2B0.1%29%5E%7B-12%7D%7D%7B0.1%7D%20%5Cright%5D%20%5C%5C%20%20%5C%5C%20%3D6.95%5Cleft%5B%5Cfrac%7B1-%281.1%29%5E%7B-12%7D%7D%7B0.1%7D%20%5Cright%5D%20%3D6.95%5Cleft%28%5Cfrac%7B1-0.3186%7D%7B0.1%7D%20%5Cright%29%3D6.95%5Cleft%28%5Cfrac%7B0.6814%7D%7B0.1%7D%20%5Cright%29%20%5C%5C%20%20%5C%5C%20%3D6.95%286.813%29%3D%5Cbold%7B%5C%2447.36%7D)
Therefore, the current share price is $47.36
</span>
Answer:
(6x + 5)(7x² - 6)
Step-by-step explanation:
Factor the first/second and third/fourth term
42x³ + 35x² - 36x - 30
= 7x²(6x + 5) - 6(6x + 5) ← factor out (6x + 5) from each term
= (6x + 5)(7x² - 6)
1) <span>95.65217391%
3)</span><span>-61.25%
5)</span><span>-29.54545454%</span>
Answer:
5 units because 5 times 5 is 25
Answer:
PROPORTION.
Step-by-step explanation:
The relative frequency in a relative frequency histogram refers to PROPORTION.
A relative frequency histogram uses the same information as a frequency histogram but compares each class interval with the number of items. The difference between frequency and relative frequency histogram is that the vertical axes uses the relative or proportional frequency rather than simple frequency