Answer:
the present value of the stock is 26.57
This will be the amount willing to pay per share today.
Explanation:
We have to calculate the present value of the future dividend
![\left[\begin{array}{ccc}Year&Cashflow&Present \: Value\\0&6&\\1&7&6.3636\\2&8&6.6116\\3&9&6.7618\\4&10&6.8301\\total&9.7&26.5671\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7DYear%26Cashflow%26Present%20%5C%3A%20Value%5C%5C0%266%26%5C%5C1%267%266.3636%5C%5C2%268%266.6116%5C%5C3%269%266.7618%5C%5C4%2610%266.8301%5C%5Ctotal%269.7%2626.5671%5C%5C%5Cend%7Barray%7D%5Cright%5D)
We will put each dividend and their year into the formula and solve for PV
First Year
Second Year
Third Year
Fourth Year
The value of the stock is the sum of the present value of their dividend
The sum for this firm is 26.5671 = 26.57
When expressing the relevant of cost in staying in dollar will be $<span>22500 in whole numbers. Staying in school when you are already in college is a challenge, because you are already one step forward to your success so it its hard to stop going to school, you need to do something so that you will be able to continue your schooling.</span>
Answer:
The variance is: $ 0.50 per direct labor hour.
Explanation:
Actual payroll = $117,000/6000h = $19.50 per hour
So, if we compare this value with the standard rate of pay ($20 per direct labor hour) The variance is: $20.00 - $ 19.50 = $0.50 per hour
The benefits of portfolio diversification can be obtained if the fund manager adds the stocks which are less than perfectly correlated. In other words, the stocks in a portfolio should have coefficient correlation lesser than 1. The market portfolio is considered to be fully diversified, this is why if the stocks with high correlation with market portfolio is added to our own portfolio, it will approach to the fully diversified portfolio and help in reducing the total risk.
