Answer:
PV= $35,217,78
Explanation:
Giving the following information:
Future value= $2,500,000
Number of periods= 63 years
Interest rate= 7% compounded annually
<u>To calculate the value of the prize today, we need to use the following formula:</u>
PV= FV/(1+i)^n
PV= 2,500,000 / (1.07^63)
PV= $35,217,78
Answer:
b. $2.50
Explanation:
Dividend paid = 45%*12,50,000
= $562500
dividend per share = 562500/225000
= $2.50
Therefore, The dividend per share should it declare is $2.50