Cost of Equity <span>
</span>Unlike debt,
which the company must pay at a set rate of interest, equity does not have a
concrete price that the company must pay. But that doesn't mean that there is
no cost of equity. Equity shareholders expect to obtain a certain return on
their equity investment in a company.<span> Therefore, the cost of equity is basically what it costs the
company to maintain a share price that is satisfactory (at least in theory) to
investors. T</span><span>
</span>
Answer:
P = 1.236 * (1.0125)^t
Step-by-step explanation:
As the Population increases at a rate proportional to itself, this is an exponencial growth, so we can write the following formula:
P = Po * (1+r)^t
where P is the population after t years, Po is the inicial population (at t=0), r is the rate of growth and t is the amount of time in years.
For our problem, we have that Po = 1.236 and r = 0.0125.
Finally, we can write the equation for P:
P = 1.236 * (1.0125)^t
Standard form: Ax + By = C
Add 8 and subtract y
Solution: 10x - y = 8