Answer:
50%
Explanation:
Statistics show that, as at 2018, over 55% of world's population lived in the city.
It is also projected that, in the year 2030, about 60% of world's population will live in urban settlements (cities)
With these realities, approximately, 50% of world's population live in the city
B bc if the food DLC do gas so gc coo be fb bl
Answer:
The value of stock A is higher than the value of Stock B and option A is the correct answer.
Explanation:
The constant growth model values the intrinsic value of a stock based on a constant growth rate in the dividends paid by the stock. This is a part of DDM and it values a stock based on the present value of the expected future dividends from the stock.
The formula for price today under constant growth model is,
P0 = D1 / (r - g)
Where,
- D1 is the expected dividend for the next period
- r is the required rate of return
- g is the growth rate in dividends
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We will calculate the P1 and discount is back one year to calculate the price today because we are given P1 and the constant growth rate applies from Year2 or D2.
<u>Stock A</u>
P1 = 4 * (1+0.06) / (0.1 - 0.06)
P0 = 106 / (1+0.1)
P0 = $96.36
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<u>Stock B</u>
P1 = 4 * (1+0.05) / (0.1 - 0.05)
P0 = 84 / (1+0.1)
P0 = $76.36
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Thus the value of stock A is higher than that of Stock B.
Answer:
Option B is correct.
<u>The NPV is positive, so invest.</u>
Explanation:
Year Cash Flow
0 -160000
1 8995
2 8995
3 8995
4 205995
$13,512.46
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