Personality traits... i think
have a good day
Answer:
the value of the MktRS (market rate of substitution) is 0
Explanation:
The computation of the market rate of substitution is shown below:
Since it is mentioned that
You like apples half as pears
So the equation would be
X = 1 ÷ 2 Y
X ÷ Y = 1 ÷ 2
Now the market rate of substitution of the price is
= $2 ÷ $4
= 1 ÷ 2
So,
= 1 ÷ 2 - 1 ÷ 2
= 0
Hence, the value of the MktRS (market rate of substitution) is 0
The same is to be considered
Answer:
$24.18
Explanation:
Dividend for year 0 = $2.2
Dividend at year end 1 = $2.2
Dividend at year end 2 = $2.2(1 + .05) = 2.31
Dividend at year end 3 = $2.31 (1 + .05) = 2.4255
Dividend at year end 4 = $2.4255 (1 + .17)= 2.8378
Dividend at year end 5 = $2.8375 (1 + .09)= 3.0932
Dividend at year end 6 = $3.0932 (1 + .09) = 3.371
MPS = ![\frac{D_{1} }{(1\ +\ k)^{1} } + \frac{D_{2} }{(1\ +\ k)^{2} } \ +\ \frac{D_{3} }{(1\ +\ k)^{3} } \ +\ \frac{D_{4} }{(1\ +\ k)^{4} } +\ \frac{D_{5} }{(1\ +\ k)^{5} } \ + \frac{1}{(1\ +\ k)^{5} } [\frac{D_{6} }{(k\ -\ g)\ ]}](https://tex.z-dn.net/?f=%5Cfrac%7BD_%7B1%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B1%7D%20%7D%20%20%2B%20%5Cfrac%7BD_%7B2%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B2%7D%20%7D%20%5C%20%2B%5C%20%5Cfrac%7BD_%7B3%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B3%7D%20%7D%20%5C%20%2B%5C%20%5Cfrac%7BD_%7B4%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B4%7D%20%7D%20%20%2B%5C%20%5Cfrac%7BD_%7B5%7D%20%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B5%7D%20%7D%20%5C%20%2B%20%5Cfrac%7B1%7D%7B%281%5C%20%2B%5C%20k%29%5E%7B5%7D%20%7D%20%20%5B%5Cfrac%7BD_%7B6%7D%20%7D%7B%28k%5C%20-%5C%20g%29%5C%20%5D%7D)
where MPS = Market price of share
D= Dividend for different years
k = Cost of equity
g= constant growth rate after year 5
putting values in above equation we get,
MPS = 1.864 + 1.65 + 1.478 + 1.463 + 1.352 + 0.4371 × 37.462
MPS = $24.18
The maximum price per share that an investor who requires a return of 18% should pay for Home Place Hotels common stock is <u>$24.18</u>
Yes, this encourages the buyer to pay more for an item especially if it is by a well known branded. This gives them to opportunity to brag and boast with their purchase. Also when the product is well known consumers are going to try their absolute best to buy it, this is going to make the product scare, hence increasing its price.
Difference between the Us Dollar. 1 US dollar is .86 Euro