What do you mean 18, but not older than 18?
Answer:
The probability that neither of both stocks increase is 0,14
Explanation:
The Complement Rule states that the sum of the probabilities of an event and its complement must equal 1.
The data we have is the probability that Stock A or B increase, we are looking for the probability that neither occur, so we have to use the complement of each one.
Complement of Stock A =1-0.54=0.46
Complement of Stock B =1-0.68=0.32
If we want to know the probability of both events happening we have to multiply both complements.
Probability that neither of these two events will occur= 0.46 x0.32= 0,1472
Answer:
a. The best estimate of the company’s cost of equity capital using the arithmetic average growth rate in dividends is 10.91%
a. The best estimate of the company’s cost of equity capital using the geometric average growth rate is 10.88%
Explanation:
a.
Time Dividend per share ($) Growth
-4 1.80
-3 1.98 10.00%
-2 2.05 3.54%
-1 2.16 5.37%
0 2.24 3.70%
Average 5.65%
D0 = $ 2.24 / share
g = 5.65%
D1 = D0 x (1 + g)
= 2.24 x (1 + 5.65%)
= $ 2.37
Current share price = P = $ 45 = D1 / (Ke - g)
The cost of equity = D1 / P + g
= 2.37 / 45 + 5.65%
= 10.91%
Therefore, The best estimate of the company’s cost of equity capital using the arithmetic average growth rate in dividends is 10.91%
a. What if you use the geometric average growth rate?
A DPS of $ 1.80 / share 4 years back has given way to a DPS of $ 2.24 today.
CAGR, g = (2.24 / 1.80)1/4 - 1
= 5.62%
D1 = 2.24 x (1 + g)
= 2.24 x (1 + 5,62%)
= $ 2.37
cost of equity = D1 / P + g
= 2.37 / 45 + 5.62%
= 10.88%
Therefore, The best estimate of the company’s cost of equity capital using the geometric average growth rate is 10.88%
Answer:
true
Explanation:
this then narrows what resources both in material and finances have to be put into further marketing and sales of said products
Economists have identified four types of competition. Perfect competition, monopolistic competition, oligopoly, and monopoly.
