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Mashutka [201]
4 years ago
11

Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $9.15, but management expects to reduce the pa

yout by 5 percent per year, indefinitely. If you require a return of 15 percent on this stock, what will you pay for a share today?
Business
2 answers:
Leokris [45]4 years ago
5 0

Answer:

$22.875

Explanation:

P0 = D0 (1 + g) / (R - g)

P0 = 9.15(1-.05) / [.15 - (-.05)]

P0 = $22.875

lina2011 [118]4 years ago
5 0

Answer:The answer is $16.66

Explanation:

Using the formula

Present worth = X/(1+R/100)∧n

X = $9.15, R= 5 % (5/100) = 0.05 , n= 1

9.15/(1+ 0.05)∧1

= 9.15/(1.05)∧1

9.15/1.05

= 8.71

Requirement of 15% on the stock

X= 9.15, R= 15% (15/100) = 0.15, n=1

X/(1+R/100)∧n

9.15/(1+ 0.15)∧1

= 9.15/(1.15)∧1

9.15/1.15

= 7.95

To arrive at the value of the share today, add the present worth together

8.71 + 7.95

= 16.66

The price to pay for the share today is $16.66

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Use of mainstream games in schools remains rare, and is unlikely to be integrated into the curriculum. reasons for this include:
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From the set $\{1, 2, 3, \dots, 20\},$ ten numbers are chosen at random, forming a subset. Let $M$ be the largest element among
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The largest element can be as small as 10, which happens when the subset is {1, 2, ..., 10}.  The probability of choosing this subset is (1/2)^10 = 1/1024.  (Every element from 1 to 10 can either be in the subset, or not.)

The largest element can also be 11.  All the numbers in the subset must be from 1 to 10, and we must choose 1 to leave out, so the probability that the largest element is 11 is C(10,1)*1/1024.

The largest element can also be 12.  All the numbers in the subset must be from 1 to 11, and we must choose 2 to leave out, so the probability that the largest element is 12 is C(11,2)*1/1024.

We can do the other cases similarly:

Largest element is 13 -> C(12,3)*1/1024

Largest element is 14 -> C(13,4)*1/1024

Largest element is 15 -> C(14,5)*1/1024

Largest element is 16 -> C(15,6)*1/1024

Largest element is 17 -> C(16,7)*1/1024

Largest element is 18 -> C(17,8)*1/1024

Largest element is 19 -> C(18,9)*1/1024

Largest element is 20 -> C(19,10)*1/1024

Adding these up, we get (1 + C(10,1) + C(11,2) + ... + C(19,10))*1/1024.  Since 1 = C(9,0), we also get (C(9,0) + C(10,1) + C(11,2) + ... + C(19,10))*1/1024.

By the Hockey Stick Identity, C(9,0) + C(10,1) + C(11,2) + ... + C(19,10) = C(20,10), so the expected value of the largest element is 1/11*C(20,10)*1/1024 = 4199/256.

6 0
3 years ago
In this example of an "inflation cooling" tax increase, the economy was initially struggling with a ________ annual rate of incr
tia_tia [17]

Answer:

2.34

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the economy was initially struggling with a 2.34 annual rate of increase in the price level.

4 0
3 years ago
Red Rock Bakery purchases land, building, and equipment for a single purchase price of $320,000. However, the estimated fair val
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Answer:

land              112,000 debit

building       192,000 debit

equipment     16,000 debit

        Cash                          320,000 credit

Explanation:

We will add each fair value and calculate the weight of each concept:

land              147,000 --> 147,000/420,000  = 35%

building      252,000 --> 252,000/420,000 = 60%

equipment     21,000  --> 21,000 / 420,000 =   5%

total             420,000

Now we assign this weight ot the lump used to acquire the assets:

land:           320,000 x 35% =  112,000

building      320,000 x 60% = 192,000

equipment: 320,000 x 55% =   16,000

8 0
3 years ago
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