The second one (straight line parallel to the y axis)
Answer:
<h2>The constant growth valuation formula is not appropriate to use unless the company’s growth rate is expected to remain constant in the future.</h2>
Step-by-step explanation:
The value of a stock can be calculated with the <em>constant growth valuation formula</em>, but it's mandatory that the stock has to have a constant growth, because it depends on this rate. Actually, the present value of a stock is calculated with this formula <em>when it can be assumed that its growth is constant.</em>
On the other hand, if the stock value is zero, if it has no growth at all, then, this formula can't be applied, because this variable will be missing.
If you see the image attached, you're gonna look for <em>'g'</em>, which represents the growth rate.
1. b = $95.94 / 6
= $15.99
t = $15.99 / 20
= $0.80
2. A: $1.28 / 8 = $0.16 per oz
B: $1.68 / 12 = $0.14 per oz
Difference: $0.02 per oz
Answer:
A
Step-by-step explanation:
this is more of a mind game. Lots of words to throw you off. Daily a cow produces a mean of 6.2 gallons (average of 6.2 gallons, meaning they already found the mean, "averaged" it out for you) with a deviation of .7 gallons ("give or take" .7 gallons). On any given day (throw these words out) 68% of the cows (don't need this information to answer the question either, thrown in to confuse you) will produce an amount of milk within which of the following ranges? Just subtract the deviation ("give or take number") .7 gallons from the mean (average (already determined)) 6.2 gallons which is 5.5 gallons THEN add the deviation ("give or take number") .7 gallons to the mean (average (already determined)) 6.2 gallons which is 6.9 gallons. Your answer is A 5.5 gallons to 6.9 gallons. You don't even have to go crazy on the math on this question you can rule them all out but A immediately with subtracting .7 from 6.2. Mind games .... LOL sneaky.
