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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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Judy tosses a coin four times. Draw a tree diagram showing the possible outcomes. Select the probability of getting 2 heads
valina [46]

Answer:

d. 1/16

Step-by-step explanation:

Flipping the coin 4 times gives a total of 16 possible outcomes. Only one of those gives 2 heads followed by 2 tails. So the probability is 1/16.

Hope this helps!

8 0
3 years ago
Which of the following shows the graph of a line through (-2,2) and (2,4)
lisov135 [29]

To answer your question, it is shown in the image below

5 0
2 years ago
What is the radius and diameter of the following circle?
FromTheMoon [43]

Answer:

Radius = 16cm

Diameter = 32cm

Step-by-step explanation:

The Radius of a circle is half the diameter of the circle. The radius is how far the outside of the circle is from the middle of the circle. To find the Diameter add the radius twice, for example 16+16. Don’t forget your UNIT it is in Centimeters in this case.

7 0
3 years ago
Read 2 more answers
Anyone can help please and quickkkk
melomori [17]

The values of x, y, and z are 1, 2, and 3 respectively after using the substitution method.

<h3>What is a linear equation?</h3>

It is defined as the relation between two variables, if we plot the graph of the linear equation we will get a straight line.

If in the linear equation, one variable is present, then the equation is known as the linear equation in one variable.

We have a linear equation in three variable:

2x + 3y - z = 5 ...(1)

4x - y - z = -1 ...(2)

x + 4y + z = 12 ...(3)

\rm \mathrm{Substitute\:}x=\dfrac{5-3y+z}{2}   (from the equation 1 and 2)

After solving:

\rm \begin{bmatrix}-7y+z+10=-1\\ \dfrac{5y+3z+5}{2}=12\end{bmatrix}

From the above, two equations:
y =2

z =3

Plug the above values in equation 1

x = 1

Thus, the values of x, y, and z are 1, 2, and 3 respectively after using the substitution method.

Learn more about the linear equation here:

brainly.com/question/11897796

#SPJ1

5 0
2 years ago
When a number decreased by 10% the result in 63. What is the number?
Ugo [173]
The number is 69.3 because percent means 0.01, so 10 x 0.01 = 1.1
so 1.1 x 63 = 69.3. you can also do 63 x 10% = 69.3.
4 0
3 years ago
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