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bearhunter [10]
3 years ago
8

A firm just paid an annual dividend of $1.40 and increases that dividend by 2 percent each year. How do you find the price if th

e firm's stock at year 4 if the discount rate is 13 percent?
Mathematics
1 answer:
Mrrafil [7]3 years ago
4 0

Answer:

14.05

Step-by-step explanation:

We have the following:

Current Dividend = D0 = $ 1.40

g = growth rate = 2%

r = discount rate = 13%

Dividend in Year 5

= D5 = D0 * (1 + g) ^ 5

= $ 1.40 * (1 + 2%) ^ 5

= $ 1.40 * (1.02) ^ 5

Firm Stock Price at the end of year 4 = Dividend in Year 5 / (r - g)

= $ 1.40 * (1.02) ^ 5 / (13% -2%)

= $ 1.40 * (1.02) ^ 5 / (0.13 - 0.02)

Therefore, firm stock at the end of year 4 is

P4 = $ 1.40 * (1.02) ^ 5 / (0.13 - 0.02) = 14.05

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This table represents a function plot the points to represent the function as a graph
yKpoI14uk [10]

Answer:

The graph in the attached figure N 2

Step-by-step explanation:

The complete question in the attached figure N 1

we have the ordered pairs

(-4,9),(-1,3),(0,1),(2,-3)

Using a graphing tool

Plot the given ordered pairs in the coordinate plane

Remember that

In a ordered pair (x,y), the first coordinate is the location of the point in the x-axis and the second coordinate is the location of the point in the y-axis

see the attached figure

The graph represent a line

<em>Find the equation of the line</em>

<em>Find the slope</em>

take two points

(0,1),(2,-3)\\m=(-3-1)/(2-0)=-2

The equation of the line in slope intercept form is equal to

y=mx+b

we have

m=-2\\b=1

substitute

y=-2x+1

6 0
3 years ago
Express 16 as a difference of two prime numbers
sasho [114]
16 can be expressed as a difference of two prime numbers in two ways, which is:23 - 7 = 16, 19 - 3 = 16
Among the choices, 16 is expressed as (23 - 7), which is the difference of two prime numbers.

8 0
3 years ago
Product A requires 5 machine hours per unit to be produced, Product B requires only 3 machine hours per unit, and the company's
Lesechka [4]

Answer:

  Produce only Product B.

Step-by-step explanation:

The contribution margin per machine hour for product A is ...

  ($16 -$6)/(5 hour) = $2 per hour

The contribution margin per machine hour for product B is ...

  ($12 -$5)/(3 hour) ≈ $2.33 per hour

The company should produce the maximum possible number of the product that contributes the most per machine hour: Product B.

5 0
2 years ago
The U.S. and many other countries have recently tightened airport security. A sociologist is interested in estimating the propor
melisa1 [442]

Answer:

0.0073 < 0.05, which means that we reject the null hypothesis and conclude that the true proportion of interest is higher than 0.7.

Step-by-step explanation:

Conduct a test to determine whether the true proportion of interest is higher than 0.7.

This means that the null hypothesis is: H_{0}: p = 0.7

And the alternate hypothesis is: H_{a}: p > 0.7

The test statistic is:

z = \frac{X - \mu}{\frac{\sigma}{\sqrt{n}}}

In which X is the sample mean, \mu is the value tested at the null hypothesis, \sigma is the standard deviation and n is the size of the sample.

0.7 is tested at the null hypothesis:

This means that \mu = 0.7, \sigma = \sqrt{0.7*0.3}

The sociologist found that 375 of the 500 travelers randomly selected and interviewed indicated that the airports were safe.

This means that n = 500, X = \frac{375}{500} = 0.75

Value of the z-statistic:

z = \frac{X - \mu}{\frac{\sigma}{\sqrt{n}}}

z = \frac{0.75 - 0.7}{\frac{\sqrt{0.7*0.3}}{\sqrt{350}}}

z = 2.44

P-value of the test:

Probability of z being larger than 2.44, that is, a proportion larger than 0.75.

This is, looking at the z-table, 1 subtracted by the pvalue of Z = 2.44. S

Z = 2.44 has a pvalue of 0.9927

1 - 0.9927 = 0.0073

0.0073 < 0.05, which means that we reject the null hypothesis and conclude that the true proportion of interest is higher than 0.7.

8 0
3 years ago
A construction crew built
Leona [35]

Answer:

4 miles in 1 day

Step-by-step explanation: Multiply 8 by the numerator for how many miles of road; That is how many halves of miles are built in a single day. Simplify that and they build 4 miles of road a day.

4 0
3 years ago
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