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Sliva [168]
3 years ago
7

A manufacturing company is expected to pay a dividend of br. 1.25 per share at the end of the year (D1=br.1.25). The stock sells

for br. 32.50 per share and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate forever. What is the growth rate
Mathematics
1 answer:
Mama L [17]3 years ago
3 0

Answer:

the equilibrium expected growth rate is 6.65%

Step by step Explanation:

We were given stock sold per share of $32.50

Dividend per share =$1.25

Required Return rate = 10.5%

Then we can calculate Percentage of Dividend for share as;

dividend of br. 1.25 per share at the end of the year (D1=br.1.25)

= 1.25×100= 125

Let the dividend percentage = y

stock sold per share × y= 125

125= 32.50y

y = 125/32.50

y= 3.85

y= 3.85*100%

Then the Dividend percentage = 3.85%

Growth rate=(required rate of return -Dividend percentage)

= 10.5 - 3.85 = 6.65

Therefore, the equilibrium expected growth rate is 6.65%

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Alexandra [31]

Answer:

The probability that carbon emissions from the factory are within the permissible level and the test predicts the opposite to be true is 19.338% (Rounding to the next thousandth place)

Step-by-step explanation:

1. Let's review the information provided to us to answer the question correctly:

Probability that carbon emissions from the company’s factory exceed the permissible level = 35% = 0.35

Accuracy of the test of emissions level = 85% = 0.85

2. The probability that carbon emissions from the factory are within the permissible level and the test predicts the opposite to be true is?

These two events, carbon emissions from the company’s factory and the accuracy of the test are independent events, therefore:

Probability that carbon emissions from the factory are within the permissible level = 1 - 0.35 = 0.65

Probability that the test predicts the opposite to be true = 0..35 * 0.85 = 0.2975 (The opposite is that the carbon emissions from the company exceed the permissible level)

Probability that carbon emissions from the factory are within the permissible level and the test predicts the opposite to be true is:

0.65 * 0.2975 = 0.193375

The probability that carbon emissions from the factory are within the permissible level and the test predicts the opposite to be true is 19.338% (Rounding to the next thousandth place

MARK BRAINLIEST PLS

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