To return something and get money back
Answer:
a. The stock's price one year from now is expected to be 5% above the current price.
Explanation:
Under gordon model:
![\frac{divends}{return-growth} = Intrinsic \: Value](https://tex.z-dn.net/?f=%5Cfrac%7Bdivends%7D%7Breturn-growth%7D%20%3D%20Intrinsic%20%5C%3A%20Value)
If we calculate the value of the stock for the year after that:
![\frac{divends x (1 + growth)}{return-growth} = Intrinsic \: Value](https://tex.z-dn.net/?f=%5Cfrac%7Bdivends%20x%20%281%20%2B%20growth%29%7D%7Breturn-growth%7D%20%3D%20Intrinsic%20%5C%3A%20Value)
to calculate the value of the increase we divide next year over current year.
![\frac{divends(1+growth)}{return-growth} \div \frac{divends}{return-growth}\\\\\frac{divends(1+growth)}{return-growth} \times\frac{return-growth}{divends}\\\\\frac{divends(1+growth)}{divends}= 1+ growth](https://tex.z-dn.net/?f=%5Cfrac%7Bdivends%281%2Bgrowth%29%7D%7Breturn-growth%7D%20%5Cdiv%20%5Cfrac%7Bdivends%7D%7Breturn-growth%7D%5C%5C%5C%5C%5Cfrac%7Bdivends%281%2Bgrowth%29%7D%7Breturn-growth%7D%20%5Ctimes%5Cfrac%7Breturn-growth%7D%7Bdivends%7D%5C%5C%5C%5C%5Cfrac%7Bdivends%281%2Bgrowth%29%7D%7Bdivends%7D%3D%201%2B%20growth)
We have demostrate that next year stock should increase by 1 + growth so statement c is correct.
Depending on her area and expertise i would recommend a state website or a government approved agency
Answer: Reach out to her Medicaid for their programs
Explanation:
There are programs that are set up to assist retiree's. Mrs Park should reach out to her state Medicaid agency and enquire if she is qualified for the programs they run which would assist her income.
Answer:
c. forget the repairs and sell the house as it is for $250,000.
Explanation:
The best option from the shown is to foget about the repairs and directly seel it at $250,000 because that leaves her with a loss of $50,000 instead of a $60,000 loss on her money, that is the best option financially. Also as the time passes the plan for the creation of the landfill downstreet will become more and more known and the value could decrease more.