The function y= -6(x - 5)2 + 12 shows the daily profit (in hundreds of
2 answers:
Answer:
D. Interpretation: The zeros are where the daily profit is $0.00
zeros: x = 3.586 and x = 6.414
Explanation:
We have been given the following daily profit function;
where y is the profit (in hundreds of dollars) of a taco food truck
and x the price of a taco (in dollars)
The zeros of this profit function can be obtained by solving for x in the following equation;
These will simply be the x-intercepts of the profit function. That is the points where the profit function crosses or intersects the x-axis.
Therefore, an interpretation of the zeros of this function would be;
The zeros are where the daily profit is $0.00
These zeros can be evaluated graphically. We first obtain the graph of the profit function as shown in the attachment below;
We then determine the x values where the graph crosses the x-axis. These values will represent the zeros of our profit function. From the graph, these points are;
x = 3.586 and x = 6.414
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Answer:
$29.70
Explanation:
Retention ratio = 1 - payout ratio
= ( 1 -0.5 )
= 0.5
Growth rate, g = ROE × Retention ratio
= 0.15 × 0.5
= 0.075
= 7.5%
Required return = Risk - free rate + [ Beta × (Market rate- risk-free rate) ]
= 2.5% + 1.44 × (11% - 2.5%)
= 14.74%
Intrinsic value =
=
= 29.69 ≈ $29.70