Answer:
The owner will maximize value if it waits 29th years Assuming 5% continuos inflation
Explanation:
the price formula for the future years is:
while it is adjusted for inflation at:
so the complete formula for value is:
Now, we can derivate and obtain the roots
Getting at a root exist at the 29th year.
The owner will maximize value if it waits 29th years Assuming 5% continuos inflation
Answer:
This is an example of A : depreciation
Explanation:
Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value.
Computer Chips are very small pieces of semiconducting material that contain integrated circuits.
Answer:
89.01
Explanation:
The computation of value of required return is shown below:-
Price 1 = (Dividend 1 ÷ (1 + Interest)) + ((Dividend 2 + Price 2) ÷ (1 + interest)^2)
= (2.35 ÷ (1 + 0.113)) + ((2.65 + 105) ÷ (1 + 0.113)^2)
= (2.35 ÷ 1.113) + (107.65 ÷ 1.238769
)
= 2.111410602 + 86.90078618
= 89.01219679
= 89.01
Therefore for computing the value of required return we simply applied the above formula.