Answer:
Could you please be specific with your question?
Explanation:
Need more info to the question
Answer:
Non-Dividend-Paying Stock
i) Calculation of the expected future price:
EVENT PROBABILITY FUTURE PRICE P RETURN R
A 0.18 $180 $32.40
B 0.09 $108 $9.72
C 0.3 $90 $27.00
D 0.25 $81 $20.25
E 0.18 $225 $40.50
Total 1.0 $129.87 $129.87
Future price = the expected returns = $129.87
ii) Calculation of the return in each of the five events:
EVENT PROBABILITY FUTURE PRICE P RETURN R
A 0.18 $180 $32.40
B 0.09 $108 $9.72
C 0.3 $90 $27.00
D 0.25 $81 $20.25
E 0.18 $225 $40.50
iii) Calculation of the expected return:
EVENT PROBABILITY FUTURE PRICE P RETURN R
A 0.18 $180 $32.40
B 0.09 $108 $9.72
C 0.3 $90 $27.00
D 0.25 $81 $20.25
E 0.18 $225 $40.50
Total 1.0 $129.87
Explanation:
a) Data & Calculations:
EVENT PROBABILITY FUTURE PRICE P RETURN R
A 0.18 $180 ?
B 0.09 $108 ?
C 0.3 $90 ?
D 0.25 $81 ?
E ? $225
If stock A does not pay dividend, it will attract capital appreciation which compensates for the unpaid dividends since the company has increased assets over liabilities. When the assets grow more than the liabilities from the reinvestment of the profits, the net value of the business which is the equity increases. This capital growth belongs to the stockholders and is distributable to them in the form of the future price of the stock, which appreciates with the capital growth.
Answer:
25,768
Explanation:
The square root rule of inventory states that the average inventory level can be calculated by multiplying the total inventory by the square root of the number of future warehouses divided by the number of the current warehouses.It's purpose is to estimate the effect of risk pooling.
Workings
X2 =( X1)* ( N2/N1)
Inventory per warehouse = 4000
No of Warehouse = 5
To inventory = 4000*5 = 20,0000
New no of Ware house = 3
20000(√5/3)=
20000*1.29=25,768