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Sergeu [11.5K]
3 years ago
12

If a stock has a required return of "r", its next dividend is expected to be "DIV1", and its dividends are expected to grow at a

constant rate "g" thereafter, then its current share price "P0" can be determined by __________. P0=DIV1/(r-g) P0=DIV1 x (r-g) P0=P1/r P0=DIV1/r
Mathematics
1 answer:
Kryger [21]3 years ago
5 0

Answer:

The correct formula is P_0=\dfrac{DI V_1}{(r-g)}

Step-by-step explanation:

\text{Current share price}=\frac{\text{Estimated dividend for next month}}{\text{Required rate of return - constant growth rate}}

Here,

Required rate = r,

Growth rate = g,

Estimated dividend for next month = DIV_1

Current share price = P_0

By substituting the values in the above formula,

P_0=\dfrac{DI V_1}{(r-g)}

Hence, the correct formula of current share is,

P_0=\dfrac{DI V_1}{(r-g)}

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Burger King sells burgers for $3.50 per burger. On Fridays, you can buy 2 burgers and get 1 free. They sold 500 burgers in 1 wee
faust18 [17]

Answer:

More information is needed, maximum weekly profit is $1750.

Step-by-step explanation:

The maximum profit would assume Burger King does not sell any burgers on Friday, therefore all 500 burgers were sold at $3.50. 500*$3.50 = $1750 in maximum earnings for the week. More information is needed about the split between the burgers sold over the week.

Maybe the question was trying to say 500 burgers were sold on Friday. In that case, assuming every customer got three burgers, 500/3 = 166.6 customers, rounding down because you cannot have half a customer, 166 customers on Friday. Each customer paid for two burgers 166*2*$3.50 = $1162 in earnings on Friday.

8 0
3 years ago
May types 125 words 7.5 minutes.Josh types 65 words in 3mins.Tyler types 400 words in 28 minutes. Order the student from who can
tensa zangetsu [6.8K]
Tyler can type the fastest among the three.
5 0
3 years ago
What part of 35 is 56? *not a percent* help pls
lesantik [10]

Expressed as a fraction 56 is 56/35 of 35. That fraction can be reduced, and expressed several ways.

56/35 = 8/5 = 1 3/5 = 1.6

56 is 1 3/5 of 35

56 is 1.6 times 35

5 0
3 years ago
A changes saved<br> Set up a proportion and use it to solve for x.<br> 2<br> 10<br> х<br> 3
V125BC [204]

Answer:

C. 15

Step-by-step explanation:

The following proportional can be set-up for the figure given:

\frac{x + 3}{x} = \frac{10 + 2}{10}

Solve for x

\frac{x + 3}{x} = \frac{12}{10}

\frac{x + 3}{x} = \frac{6}{5}

Cross multiply

5(x + 3) = x(6)

5x + 15 = 6x

15 = 6x - 5x

15 = x

x = 15

3 0
3 years ago
A certain genetic condition affects 8% of the population in a city of 10,000. Suppose there is a test for the condition that has
enot [183]

Solution:

Population in the city= 10,000

As genetic condition affects 8% of the population.

8 % of 10,000

=\frac{8}{100}\times 10,000=800

As, it is also given that, there is an error rate of 1% for condition (i.e., 1% false negatives and 1% false positives).

So, 1% false negatives means out of 800 tested who are found affected , means there are chances that 1% who was found affected are not affected at all.

So, 1% of 800 =\frac{1}{100}\times 800=8

Also,  1% false positives means out of 10,000 tested,[10,000-800= 9200] who are found not affected , means there are chances that 1% who was found not affected can be affected also.

So, 1% of 9200 =\frac{1}{100}\times 9200=92

1. Has condition Does not have condition totals  = 800

2. Test positive =92

3. Test negative =8

4. Total =800 +92 +8=900

5. Probability (as a percentage) that a person has the condition if he or she tests positive= As 8% are found positive among 10,000 means 9200 are not found affected.But there are chances that out of 9200 , 1% may be affected

=\frac{\text{1 percent of 9200}}{9200}\\\\ \frac{\frac{1}{100}\times 9200}{9200}=\frac{92}{9200}\\\\ =0.01

that is Probability equal to 0.01 or 1%.

7 0
3 years ago
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