If a land owner retains the right to plant and cultivate crops on the land but leases the rest of the land to a tenant, what rig
1 answer:
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Answer:
$5837 approx
Explanation:
Amount =
Amount deposited at the end of year 1 would yield = $2500 = $2500 × 1.41158 = $3528.95
Amount deposited at the end of year year 3 would yield = $750 = $891.075
Amount deposited at the end of year 4 would yield = $1300 = $1417
Total deposit at the end of year 5 = $3528.95 + $891.075 + $1417 = $5837 approx.
Answer:
$16.67
Explanation:
Data provided in the question;
Dividend to be paid next year, D1 = $2
Expected growth rate of dividend, g = 4% = 0.04
Required rate of return on the investment = 16% = 0.16
Now,
Price to be paid for the stock =
or
Price to be paid for the stock =
or
Price to be paid for the stock = $16.67