The present value of an annuity of n periodic payments of P at r% where payment is made annually is given by:
![PV=P \left[\frac{1-(1+r)^{-n}}{r} \right]](https://tex.z-dn.net/?f=PV%3DP%20%5Cleft%5B%5Cfrac%7B1-%281%2Br%29%5E%7B-n%7D%7D%7Br%7D%20%5Cright%5D)
Given that <span>Estes
Park Corp. pays a constant dividend of P = $6.95 on its stock. The company
will maintain this dividend for the next n = 12 years and will then cease
paying dividends forever. If the required return on this stock is r = 10 % = 0.1.
Thus, the current share price is given by:
![Current \ share \ price=6.95 \left[\frac{1-(1+0.1)^{-12}}{0.1} \right] \\ \\ =6.95\left[\frac{1-(1.1)^{-12}}{0.1} \right] =6.95\left(\frac{1-0.3186}{0.1} \right)=6.95\left(\frac{0.6814}{0.1} \right) \\ \\ =6.95(6.813)=\bold{\$47.36}](https://tex.z-dn.net/?f=Current%20%5C%20share%20%5C%20price%3D6.95%20%5Cleft%5B%5Cfrac%7B1-%281%2B0.1%29%5E%7B-12%7D%7D%7B0.1%7D%20%5Cright%5D%20%5C%5C%20%20%5C%5C%20%3D6.95%5Cleft%5B%5Cfrac%7B1-%281.1%29%5E%7B-12%7D%7D%7B0.1%7D%20%5Cright%5D%20%3D6.95%5Cleft%28%5Cfrac%7B1-0.3186%7D%7B0.1%7D%20%5Cright%29%3D6.95%5Cleft%28%5Cfrac%7B0.6814%7D%7B0.1%7D%20%5Cright%29%20%5C%5C%20%20%5C%5C%20%3D6.95%286.813%29%3D%5Cbold%7B%5C%2447.36%7D)
Therefore, the current share price is $47.36
</span>
Hopefully you will be enlighted more than confused
we have a rule in forming triangle.
that sum of any two sides is must be greater than the third side.
here we have three sides measure 9m,9m, and 9m
we have to add up any two sides here .
so 9+9=18 .
where 18 is greater than the third side 9.
so it is possible to form triangle with the given length sides.
Answer:
3
Step-by-step explanation:
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Step-by-step explanation:
The question is not clear to me