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Answer:
11.611 +/- 3.013
Explanation:
3 3.5 4 6 7 8 8.5 12.5 15
7 17 19 12 19 22 28 20 28
difference
4 13.5 15 6 12 14 19.5 7.5 13
mean = 11.611
the standard deviation ⇒ 7.611² + 1.889² + 3.389² + 5.611² + 0.389² + 2.389² - 7.889² + 4.111² + 1.389² = 57.927 + 3.568 + 11.485 + 31.483 + 0.151 + 5.707 + 62.236 + 16.9 + 1.929 = 191.386/9 = √21.265 = 4.611
standard deviation = 4.611 1.918
confidence interval = mean +/- [(standard deviation/√9) x 1.96]
11.611 + [(4.611/3) x 1.96] = 11.611 + 3.013
11.611 - [(4.611/3) x 1.96] = 11.611 - 3.013
Answer:
The price of the stock is $66.5
Explanation:
The constant growth model of the DDM approach will be used to calculate the price of such a stock today.
The formula for the constant growth model is,
P0 or V = D0*(1+g) / r - g
As the growth rate in the company's dividedn is negative, the growth rate will be -5%.
The price of the stock is,
P0 = 11.9 * ( 1 - 0.05) / 0.12 + 0.05
P0 = $66.5
Answer:
present value = $785.21
Explanation:
given data
interest rate r = 5%
Year 1 Cash Flow C1 = $190
Year 2 Cash Flow C2 = $390
Year 3 Cash Flow C3 = $290
time t = 3 year
solution
we get here present value of cash-flow stream that is express as
present value =
......................1
put here value and we get
present value = 
present value = $785.21