Based on the fact that Duffs Co. dividends grow at 24% for three years and then 6%, the current share price of the company is $63.29.
<h3>What is Duffs Co. current price?</h3>
First, find the price of the stock in year 3 when the stock grows at 6%:
= (1.90 x 1.24³ x 1.06) / (0.11 - 0.06)
= $76.79
This amount is the terminal value. You are to take the present value of this amount along with the present value of the dividends up to year 3:
= ((1.90 x 1.24) / 1.11) + ((1.90 x 1.24²) / 1.11²) + ((1.90 x 1.24³) / 1.11³) + 76.79 / 1.11³
= $63.29
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The fraction would be 5/1.
The answer for t is 4 and the proportional relationship is 9
Your answer is correct :)
XY is congruent to QS
Congruent means equal :)
2x+(x-1)=2+4x
2x+x-1=2+4x
2x+x+4x=2+1
7x=3
x=3/7
