The current price of the stock given the dividend, cost of equity and growth rates is $46.90.
<h3>What is the current stock price?</h3>
Thw two-stage dividend growth model would be used to determine the value of the stock.
First stage:
- dividend in Y1 = 1.20x 1.12 = 1.344
- dividend in Y2 = 1.20 x 1.12^2 = 1.505
- dividend in Y3 = 1.20 x 1.12^3 = 1.69
Second stage:
Y3 = (1.69 X 1.06) / (0.095 - 0.06) = 51.059
Find the present value of these cash flows
(1.344 / 1.095) + (1.505 / 1.095²) + (1.69 / 1.095³) + (51.059/1.095³) = $46.90
To learn more about the two stage dividend model, please check: brainly.com/question/26564273
Answer:
1.What is the y intercept of the function?
y-coordinate when x = 0, take from the table.
2.What is the first difference?
Difference of y-values. This is the slope
3.Write an equation to represent the function given in the table
Use the first difference and the y-intercept: b = 5, m = 2
3 divided by 64 is 0.046875
Answer: " \frac{1}{4} gal /hr ; or, write as: " 0.25 gal/hr. " .
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Step-by-step explanation:
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This is a "unit rate" problem;
that is: we want to solve for a particular quantity per [single] unit.
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→ in this case, per single "hour" ;
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So we convert:
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" 2 gal per 8 hours" ; to the correct number of:
_?_ gal per [single] hr.
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{<u>Note</u>: "gal" refers to: "gallon(s)" ;
"hr" refers to: "hour(s)" .}.
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→ "
gal / hr. " ;
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→ " {
[2÷2] / [8÷2] = 1/4 ;
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So, the answer is:
→ "
" ;
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or: write as decimal:
→ "
= (1 ÷ 4) = 0.25 " ;
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write the answer as:
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→ " 0.25 gal/hr. "
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Or, when we had:
→ "2/8" gal/hr ;
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Use calculator:
→ "
= "2 ÷ 8" ;
= " 0.25 gal/ hr.
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So: The correct answer is:
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" \frac{1}{4} gal /hr ; or, write as: " 0.25 gal/hr. " ;
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Hope this is helpful to you!
Best wishes in your academic endeavors—
and within the "Brainly" community!
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All you need to do is <u>Divide</u><u /> 84 from 672.