Answer: <em><u>Developers can spend $55316.9</u></em>
Explanation:
EAR =![[e^{Annual percentage rate} -1]\times 100](https://tex.z-dn.net/?f=%5Be%5E%7BAnnual%20percentage%20rate%7D%20-1%5D%5Ctimes%20100)
Effective Annual Rate=
Effective Annual Rate% = 9.42
![PV_{Ordinary Annuity} = C\times [\frac{(1-(1+\frac{i}{100} )^{-n} )}{(i/100)} ]](https://tex.z-dn.net/?f=PV_%7BOrdinary%20Annuity%7D%20%3D%20C%5Ctimes%20%5B%5Cfrac%7B%281-%281%2B%5Cfrac%7Bi%7D%7B100%7D%20%29%5E%7B-n%7D%20%29%7D%7B%28i%2F100%29%7D%20%5D)
where;
C = Cash flow per period
i = interest rate
n = number of payments
![PV = 3500\times [\frac{(1-(1+\frac{9.42}{400} )^{-5\times 4} )}{(9.42/400)} ]](https://tex.z-dn.net/?f=PV%20%3D%203500%5Ctimes%20%5B%5Cfrac%7B%281-%281%2B%5Cfrac%7B9.42%7D%7B400%7D%20%29%5E%7B-5%5Ctimes%204%7D%20%29%7D%7B%289.42%2F400%29%7D%20%5D)
PV = $55316.9
Answer:
P0 = $14.4683 rounded off to $14.47
Explanation:
To calculate the market price of the stock today, we will use the constant growth model of DDM. The constant growth model calculates the values of the stock today based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
- D0 is the dividend today
- g is the constant growth rate
- r is the required rate of return on the stock
We first need to calculate r using the CAPM equation. The equation is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on market
r = 0.06 + 1.6 * (0.147 - 0.06)
r = 0.1992 or 19.92%
Using the price formula for DDM above, we can calculate the price today to be,
P0 = 1.9 * (1+0.06) / (0.1992 - 0.06)
P0 = $14.4683 rounded off to $14.47
Answer:
e commerce is right answer
Answer:
Depending on how many stages you like to go by here are the phases
<u>6 Stages:</u>
1. Development
2. Introduction
3. Growth
4. Maturity
5. Saturation
6. Decline
<u>4 Stages:</u>
1. Development/Introduction
2. Growth
3. Maturity
4. Decline
Explanation:
Check the Attached Image!