Answer:
Expected rate of return =7.1% (Approx.)
Step-by-step explanation:
Given:
Current stock price = $50
Divided d = $2
Growth rate g = 5 %
Find:
Expected rate of return
Computation:
Expected rate of return = D(1+g)/Current Price + g
Expected rate of return = [2(1+5%)/50] + 5%
Expected rate of return =7.1% (Approx.)
If I’m correct, then the answer is D. Someone please correct me if I’m wrong.
Answer:
4, 6, 1
Step-by-step explanation:
We can solve this problem using a system of equations:
1) a + b + c = 11
2) 2a + 5b + 6c = 44
3) 4a - b = 10
First, we can substitute the value of b from equation #3 into equation #1:
b = 4a - 10
a + (4a - 10) + c = 11
5a - 10 + c = 11
5a + c = 21
c = 21 - 5a
Now, we can plug the values of b and c into equation #2, as b and c are represented in terms of a:
2a + 5(4a - 10) + 6(21 - 5a) = 44
2a + 20a - 50 + 126 - 30a = 44
-8a + 76 = 44
-8a = -32
a = 4
b = 4a - 10 = 4(4) - 10 = 6
c = 21 - 5a = 21 - 5(4) = 1
